Vion sells meat processing business

THE 2 Sisters Food Group, which supplies chicken to the likes of Tesco, Sainsbury’s and KFC, has acquired Dutch group Vion’s poultry and red meat processing businesses in the UK for an undisclosed sum.

Birmingham-based 2 Sisters said the move will help it meet growing demand from its existing poultry business as well as diversifying its offering to include red meat products.

The deal involves 11 UK processing sites, including one at Sandycroft, near Chester, which jointly employ 6,000 people.

The acquisition follows a decision by Vion to focus on food activities in the Netherlands and Germany and its global ingredients business.

This also prompted last year’s disposal of pizza maker Paramount, based in Salford and Deeside, which later went into administration.

2 Sister’s chief executive Ranjit Singh Boparan said: “We are delighted to be acquiring Vion’s UK’s poultry and red meat businesses. They have faced significant uncertainty and tough trading in recent months, but today’s 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.

“This acquisition will safeguard a key supply chain for high quality British poultry and meat, offering reassurance to farmers in England, Scotland and Wales and upholding the quality and provenance that UK consumers deserve.”

Law firm DLA Piper represented 2 Sisters in the deal, while investment bank Rothschild acted for Vion.