The company said the acquisition will help to meet growing demand from its poultry customers and diversifies the company’s offering to include red meat.
Ranjit Singh, 2 Sisters chief executive, 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.”
Vion’s poultry and red meat businesses supply poultry, beef and lamb to the retail and foodservice sectors in the UK and Europe. They operate 11 processing sites in the UK, employing about 6,000 employees.
The purchase follows the Dutch multinational’s decision last November to sell its UK food 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,” according to a 2 Sisters’ statement.
John Swinney, the Scottish government’s secretary for finance, employment and sustainable growth, said: “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.”
Edwina Hart, 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.”
Meanwhile, Vion's red meat and poultry business can expect some "major cost savings" according to industry analyst Julian Wild of Rollits solicitors.
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