Foods group Glanbia is set to withdraw from the cooked meats business in Ireland with the sale of its Roscrea brand and business to Cork co-op Dairygold, The Irish Times has learned. It is understood the terms of the deal have been agreed and that the sale will be completed within the next two weeks.

A spokesman for Glanbia would not comment on the planned sale, but it is understood the consideration for the £20 million (#25.4 million) turnover is modest - no more than a few million pounds. Under the deal, Dairygold is buying both the Roscrea brand and the Parkmore processing plant in Roscrea, Co Tipperary.

It is understood that 140 people are employed at Parkmore. There are no indications yet what Dairygold's plans are with regard to employment at the plant.

Glanbia will complete its withdrawal from consumer meats with the closure of a small processing plant in Blessington, where 30 people are employed.

Dairygold already manufactures sliced meats, rashers, sausages and puddings under the Galtee name at its Mitchelstown plant in Cork. Industry sources said that Dairygold's Galtee brand and Kerry's Denny have been neck-and-neck for the leading position in the Irish cooked meats market, while Glanbia's brand is a poor third with a relatively small market share. The addition of Roscrea will make Dairygold the number one processor.

Glanbia's withdrawal from cooked meats does not mean the group is planning to withdraw from pigmeat processing. Informed sources said the sale of Roscrea was part of a "grow or go" strategy, where the group moves out of operations where it does not have a major market share.

Glanbia is the biggest pigmeat processor in the State, with slaughtering and processing plants in Rooskey, Edenderry, Clara and Roscrea. Sources said the group intended to concentrate its resources on fresh pigmeat.

Meanwhile, it is understood that Glanbia is close to completing a major new contract in the British food service market and an announcement is likely within the next week.