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2 Sisters Food Group agrees acquisition of VION’s UK poultry and red meat, securing a viable future for these businesses

Boparan Holdings Limited (BHL), the holding company for 2 Sisters Food Group, today announces that it has agreed to acquire VION’s poultry and red meat processing businesses in the UK. The acquisition secures a viable future for these businesses, as well as providing certainty to their UK supply chain, which is underpinned by British farmers. The acquisition will help to meet growing demand from 2 Sisters’ poultry customers and further diversifies the company’s offering to include red meat, supporting 2 Sisters’ strategy of serving more meal occasions.  

The acquisition follows the announcement by VION’s Dutch parent company on 19 November 2012 of its plan to exit its UK operations. VION’s poultry and red meat businesses are suppliers of poultry, beef and lamb to the retail and food service sectors in the UK and Europe. They have 11 processing sites in the UK and approximately 6,000 employees and have suffered from challenging trading conditions, in particular in poultry, with the loss of a number of major contracts.

Ranjit Singh, Chief Executive of 2 Sisters Food Group, said: 
“We are delighted to be acquiring VION 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 customers and consumers deserve.

At 2 Sisters, we put the customer at the heart of everything we do and in line with our customers’ strategies, these businesses will help us to shorten the supply chain for consumers and meet growing demand for British sourced food. Our immediate focus will be to improve performance, as we have successfully done with our previous acquisitions. We look forward to welcoming VION colleagues to 2 Sisters Food Group, and to working together to grow our business.”

Edwina Hart AM, Welsh Business Minister, said: 
“I welcome today's announcement that 2 Sisters is to acquire VION’s poultry and red meat businesses, which safeguards the future of their operations in Wales. We have been working closely with both VION and 2 Sisters to help secure this deal in order to sustain the future for the workers and the supply chain in Wales.”  

John Swinney MSP, Secretary for Finance, Employment and Sustainable Growth in the Scottish Government, said: 
“I welcome the decision by the 2 Sisters Food Group to buy Vion. Today's announcement is a significant step forward and my officials and I look forward to working with 2 Sisters over the coming months in order to secure a sustainable future for the plants in Scotland. This is a time of significant opportunity in building the food sector in Scotland and the involvement of 2 Sisters assists that process.”

Notes:

The sites acquired by 2 Sisters Food Group are:

VION UK Poultry

CountrySite
Scotland Coupar Angus
  Cambuslang
Wales Llangefni
  Sandycroft
England Basildon
  Witham
  Eye

VION UK Red Meat

CountrySite
Scotland McIntosh Donald, Portlethen
Wales St Merryn Foods, Merthyr
England St Merryn, Victoria
  St Merryn, Bodmin