The acquisition will bring the abattoir into ABP's UK meat division, expanding its lamb processing operations
One of Wales's major lamb processing plants is set to change hands after ABP Food Group agreed to acquire Pilgrim's Europe's Llanidloes abattoir in Powys.
The deal is expected to complete in December, with the site's 140 employees expected to transfer to ABP UK.
The acquisition will bring the Welsh facility into ABP's UK meat division, expanding the processor's existing lamb operations.
ABP confirmed the agreement to the Irish Farmers Journal, with a spokesperson outlining plans to support both workers and livestock suppliers during the change of ownership.
The company said it was working towards "a smooth and seamless transition for farmer suppliers at Llandiloes" and welcomed the existing workforce into its UK business.
For Welsh sheep farmers, the takeover represents a significant change in ownership at an established lamb processing site.
ABP has not detailed how existing livestock procurement arrangements will operate following the takeover.
The Llanidloes abattoir has been an important part of the Welsh lamb supply chain for many years, previously operating under Randall Parker Foods.
Pilgrim's UK acquired Randall Parker Foods in November 2021, bringing the Powys abattoir and a lamb packing facility in Andover, Hampshire, into its business.
At the time, the Llanidloes plant was described as having the capacity to process up to 20,000 lambs a week, highlighting its significance to the sector.
The acquisition was intended to strengthen Pilgrim's lamb supply chain and bring farmers, processors and retail customers closer together.
In August 2022, Pilgrim's UK launched a dedicated lamb business focused on processing Welsh and British lamb products.
The latest deal will see the Llanidloes facility become part of ABP's wider network of meat processing operations across Britain and Northern Ireland.
ABP's existing lamb processing sites include Yetminster and Kingswinford in England, Bridge of Allan in Scotland, and Lurgan and Dungannon in Northern Ireland.
The company is a major supplier of fresh and frozen meat to retailers and foodservice customers, with processing operations across the UK, Ireland and mainland Europe.
The proposed sale comes amid continued attention on the availability of livestock processing capacity and the importance of reliable routes to market for British sheep producers.
Financial terms of the acquisition have not been made public.
With completion expected in December, ABP has pledged to work towards a smooth transition for existing farmer suppliers and the Llanidloes workforce.