Endless in talks to buy Vion’s poultry and red meat divisions

The Leeds-based private equity house is in advanced discussions with Vion about the acquisition of the poultry division, which 
is based at Thorne, near Doncaster.

Endless is believed to be facing stiff competition from Ranjit Boparan’s Birmingham-based 2 Sisters Food Group, which won the race to acquire Northern Foods in 2011, and Sun European Partners.

Vion’s poultry business turns over £600m and employs 6,000 people at sites across the UK.

The operation is said to be profitable and has contracts to supply Sainsbury’s, the Co-op and other supermarket groups. It is understood that a successful deal would require the support of its customers to proceed.

Endless is also in talks to buy Vion’s red meat business, which has cattle and lamb interests in Scotland, Wales and the South West of England. The division has sales of £500m and 3,000 employees.

Endless has already completed a deal with Vion to buy its loss-making pork business, which employs 4,000 people, including 900 in Malton, 400 in Scunthorpe and 169 in Hull.

Earlier this month, a spokesman for Endless said: “We are delighted to have been selected by the MBO team to support their plans and aspirations for such a strategically important business in the UK food sector, with its focus on local produce at a time when customers’ demands for British sourced food are increasing.”

The fact that Endless has successfully transacted with Vion could give the turnaround specialist an advantage over rival bidders.

Vion’s UK businesses have a combined turnover of £1.8 billion and employ 13,000 across 38 sites.

It recorded a £40m loss last year, which has been largely attributed to a sausage, haggis and black pudding factory in Glasgow that was said to be losing £750,000 a week. Vion is closing down the plant. The privately owned group wants to focus on its core food activities in the Netherlands and Germany and its global ingredients business.

Endless, which is backed by high net worth individuals and institutional investors, has a strong track record in turning around businesses.

Its modus operandi is to inject working capital and to invest in a business to improve efficiencies. It has generated market-leading returns for its investors.

Garry Wilson, the managing partner, declined to comment when approached by the Yorkshire Post.

Endless has raised around £500m and made 40 or so investments since Mr Wilson, business partner Darren Forshaw and original backer David Newett launched the buyout firm in 2005.