OSI Group, a major player in global meat processing, has announced its acquisition of U.K.-based protein supplier Karnova Food Group from private equity firm Endless LLP. The acquisition marks another strategic move by the privately held U.S. company to expand its European presence and could have implications for the global pork supply chain.
A Growing Presence in the U.K. and Beyond
Based in Aurora, Ill., OSI Group operates 67 food manufacturing facilities in 16 countries, supplying meat products to customers in 77 nations. Its latest acquisition, Karnova Food Group, was formed by Endless LLP after merging Yorkshire Premier Meat and Smithfield Murray in 2022 and 2023, respectively. Karnova has since grown into a leading value-added, business-to-business protein supplier, generating annual revenues exceeding $168 million.
Katharine Haenelt, managing director of OSI U.K., emphasized the company’s enthusiasm for the deal: “We are delighted to be welcoming Karnova into the OSI family. We have been hugely impressed with how the business has developed under Endless’ ownership and see significant opportunities for further growth across the combined businesses.”
Potential Impact on the Pork Industry
While OSI Group is widely known for its beef and poultry processing, its role in the pork sector is substantial. The acquisition of Karnova could have ripple effects in multiple ways:
- Enhanced Supply Chain for Pork Ingredients: Karnova specializes in protein ingredients, and OSI’s expansion may improve efficiencies in sourcing, processing, and distributing pork-based products across Europe.
- Strengthening OSI’s Position in Value-Added Pork: With Karnova’s expertise in processing, OSI may look to expand its pork offerings in the U.K. and European markets, potentially increasing competition with established regional suppliers.
- Global Trade Implications: As OSI scales up its presence in Europe, this could impact pork exports from North America. If OSI shifts some of its supply chain needs to European sources, U.S. pork processors may need to adjust strategies accordingly.
Industry Consolidation Continues
This acquisition follows OSI Group’s recent moves, including the purchase of U.S.-based food manufacturer Park 100 Foods in October and the acquisition of Flagship Europe from Flagship Food Group in 2016. The trend of consolidation highlights the increasing demand for vertically integrated supply chains and the need for major processors to control more of the value-added production process.
What’s Next?
With OSI Group’s continued global expansion, the pork industry should keep an eye on how this acquisition influences supply chain efficiencies, pricing strategies, and potential shifts in trade dynamics. If OSI increases pork-related production through Karnova, it may present new opportunities—or new challenges—for pork producers in North America and beyond.
Stay tuned to Swine Web for updates on how this deal shapes the future of pork processing and international trade.
