Vion to sell red meat and poultry businesses to 2 Sisters Food

Dutch food company Vion has entered into an agreement with Boparan Holdings, the holding company for UK-based 2 Sisters Food, to sell its red meat and poultry activities, as part of its efforts to secure a viable future for these businesses.

Under the deal, 2 Sisters Food will acquire 11 processing facilities, including those in Coupar Angus, Cambuslang and Portlethen.

Vion’s red meat business offers beef and lamb under three brands: McIntosh Donald in Scotland, Welsh Country Foods in North Wales, and St Merryn Foods in South Wales and the West Country.

Vion’s poultry business owns hatcheries, feed mills, and packing and processing facilities, and offers fresh chicken products.

Both businesses cater to major retailers, as well as wholesale and foodservice markets.

The move follows Vion’s announcement on 19 November 2012 that the company was selling its UK food operations and returning to its core activities by focusing on food operations in the Netherlands and Germany, and developing its global ingredients business.

As part of this plan, Vion completed the management buy-out of its UK pork business in January this year, securing about 4,000 jobs.

Commenting on the latest deal, 2 Sisters Food chief executive Ranjit Singh said that while Vion has faced significant uncertainty and tough trading in recent months, this acquisition secures a viable future.

"With the majority of the operations being in Scotland and Wales, we are delighted that the Scottish and Welsh governments are supportive of this deal and we look forward to working with them and developing a sustainable future for these businesses," Singh said.

"Our immediate focus will be to improve performance, as we have successfully done with our previous acquisitions," he added.

2 Sisters Food stated that the acquisition will help the company shorten the supply chain for consumers and cater to the growing demand for British sourced food.

The transaction is expected to safeguard a key supply chain for British poultry and meat, providing support to farmers in England, Scotland and Wales.

Meanwhile, Vion is exploring opportunities for its Welsh Country Foods business, which is currently in a 90-day consultation process following its key customer delisting it as a supplier.