Ranjit Singh Boparan has successfully executed the sale of poultry assets in Europe from his family-owned 2 Sisters Food Group to his private investment vehicle, Boparan Private Office.
According to a statement from 2 Sisters Food Group, this transaction, valued at “in excess” of €200 million ($221.2 million), involves transferring the assets from Boparan Holdings to Boparan Private Office.
The sold entity operates under the name 2 Sisters Storteboom and employs over 2,700 individuals. This business specializes in a variety of chicken products and has six processing facilities located in the Netherlands and three in Poland.
Once finalized, pending regulatory approval in Poland, the poultry assets will enhance the Boparan Private Office portfolio, which already includes notable brands like Bernard Matthews and Elkes Biscuits.
In its announcement, 2 Sisters emphasized that this “arms-length” deal aims to “strengthen” its balance sheet and reduce its net debt to the lowest level seen in over a decade.
Boparan Holdings’ bond funding arrangements are set to expire within the next year, making this deal essential for providing refinancing options as corporate funding needs arise in the coming months.
Boparan stated, “This is a significant and transformational deal and unlocks many opportunities for the future, so we are very pleased to announce an agreement has been reached. All my companies will benefit as it creates a stronger, more agile group of businesses and provides a platform for an unprecedented level of internal investment.”
He further added, “As well as strengthening BHL, it gives the European poultry business, under the BPO, a dedicated regional focus on its European markets, unlocking undoubted growth opportunities through a focus on quality, animal welfare, and sustainability.”
In related news, in March, Bernard Matthews confirmed plans to close its cooked meats factory in Great Witchingham, located in eastern England, consolidating production to its other five facilities throughout the UK: Holton, Derby, and Sunderland.
Recent financial reports filed with Companies House reveal that for the year ending January 1, 2023, Bernard Matthews achieved a revenue of £284.8 million ($361.1 million), an increase from £270.8 million the previous year. Meanwhile, operational profit losses reduced considerably from £25 million to £9.6 million. Despite this, the company recorded a net profit loss of £7.9 million, improving from a £20.9 million loss.
This strategic maneuver by Boparan exemplifies emerging trends in the food and beverage industry, illustrating how private entities in the food and drink business are adapting to consumer demands and shifting market dynamics. The impact of these decisions resonates not only within the immediate companies involved but also highlights evolving food and drink consumer trends that stakeholders must monitor closely.
