McCarrens takeover rumours mount
Damian McCarney
A major Cavan Town meat processor has refused to comment on speculation of an impending takeover, in the same week as an investigation into paperwork irregularities were revealed. The Anglo-Celt understands that McCarren & Co could potentially be taken over by Irish meat processing giants Kepak.
When The Anglo-Celt put the Kepak speculation to managing director, Andrew McCarren, he said he would not comment on the matter.
Queries sent to Kepak asking for confirmation of a proposed takeover or takeover discussions and what implications such a move would have for jobs remained unanswered at the time of going to press.
The speculation follows reports in a farming publication that the company had generated revenues of €38.2m for the year ending March 31, 2012. However this translates into profits after tax of €167,624 or a profit margin of just 0.42%, while net debt reportedly rose from €1.7m to €7.5m.
Among the many big brands the company list on their website as customers are Olhausens’ Sausages. The Irish Farmers Journal reported that a number of pig producers, including McCarren, had to take a write down on its debtors due from the Dublin-based Olhausens after it went into liquidation last year.
The takeover speculation comes in the same week that it was reported that McCarren & Co is subject of an investigation into ‘irregularities in paperwork for salmonella test results’.
Company MD, Andrew McCarren, told The Anglo-Celt the investigation related to historic issues, and gave assurances that it had nothing to do with food contamination.
A national newspaper reported on Sunday that McCarren & Co was the subject of a joint Gardaí and Department of Agriculture investigation involving exports to Russia. It is understood that the export of pork products to certain countries requires testing for the bacteria. The investigation was reportedly prompted by a Department official who suspected irregularities in paperwork.
'The investigation is an issue that happened over two years ago,' said Mr McCarren. 'It was a paperwork isue and there was no food contamination at all.'
He proceeded to outline how they comply with the highest of hygiene standards.
'The company has since achieved exceptionally high hygiene levels under BRC (British Retail Consortium) and Bord Bia and we’ve just recently got our Tesco welfare standard and we’ve been passed by all Dep of Ag audits.'
Mr McCarren said the investigation prevented him from discussing its details.
Cavan Gardaí told The Anglo-Celt that they had not received any complaint against McCarren & Co. However that does not rule out the possibility of a centrally based unit in Dublin from the force from conducting an investigation of this nature, independent from Cavan Gardaí.
The Garda Press Office in Dublin said that they do not comment on named individual or organisations. Likewise the Department of Agriculture said: 'The Department does not comment on ongoing investigations.'