2 Sisters tycoon snaps up meat processing sites in the wake of food scandal
Mr Boparan, who bought Yorkshire’s Northern Foods in 2012, is acquiring the businesses from Dutch group Vion, which is quitting the UK.
No price was put on the deal, but it is thought to be in the low tens of millions of pounds.
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Hide AdThe deal sees Mr Boparan’s 2 Sisters Food Group acquire 11 processing sites in the UK, employing around 6,000 staff. The £500m poultry business is believed to be unprofitable, after losing a number of major contracts. However, the £500m red meat business is thought to be profitable.
The sites are dotted across England, Wales and Scotland. 2 Sisters said it is not buying Vion’s poultry headquarters in Thorne near Doncaster.
Vion did not elaborate on its plans for the site.
Vion recently sold its pork business and eight sites to Leeds-based private equity firm Endless, which backed a management buyout.
2 Sisters is believed to have won more work with market leader Tesco. Tesco chief executive Philip Clarke last week told a conference of farmers it plans to shorten its supply chain after horsemeat was found in some of its products. Mr Clarke said: “Where it is reasonable to do so, we will source from British producers.”
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Hide AdThe Vion businesses source their meat from British farmers, 2 Sisters said.
“These businesses will help us to shorten the supply chain for consumers and meet growing demand for British-sourced food,” said Mr Boparan.
The deal lifts 2 Sisters to more than £3.3bn of sales and about 24,000 staff.
National Farmers’ Union president Peter Kendall hailed the deal. “The purchase will safeguard a key supply chain for high-quality British beef, lamb and poultry,” he said, adding he will seek a meeting with 2 Sisters.
Endless had also been circling the poultry and red meat businesses.