‘Chicken king’ sells European poultry arm to himself for £170m
Ranjit Singh Boparan has announced plans to sell his European poultry operation to his private office in a £170m deal.
The business, which trades as 2 Sisters Storteboom and employs 2,700 people, is currently part of 2 Sisters parent company Boparan Holdings (BHL).
It will join the ranks of Bernard Matthews, Banham Poultry and Elkes Biscuits in the Boparan Private Office (BPO), along with Mr Boparan’s portfolio of restaurant businesses.
The ‘chicken king’ and owner of 2 Sisters Food Group, has high-street restaurant brands like Carluccio’s and Gourmet Burger Kitchen as part of the portfolio.
BHL’s current bond funding arrangements expire within the next 12 months. This latest cash injection will give the business options for refinancing when the time comes to address corporate funding in the coming months.
Boparan said: “This is a significant and transformational deal and unlocks many opportunities for the future, so we are very pleased to announce an agreement has been reached. All my companies will benefit as it creates a stronger, more agile group of businesses and provides a platform for an unprecedented level of internal investment.”
“As well strengthening BHL, it gives the European poultry business, under the BPO, a dedicated regional focus on its European markets, unlocking undoubted growth opportunities through a focus on quality, animal welfare and sustainability.”
The transaction is set to strengthen BHL’s 2 Sisters Food Group’s balance sheet and enable it to reduce net debt levels to the lowest point in over a decade.
It will fuel Boparan’s ‘Next Generation’ investment programme, which will focus on sustainability goals and food processing technologies.
The European poultry sale is subject to Polish anti-trust approval with an anticipated completion date later this month.
