German meat industry leader Tönnies has announced a significant acquisition of beef assets in Germany from its Dutch counterpart, Vion. This transaction encompasses the “majority” of Vion’s beef operations within the country.
As part of its strategic realignment, Vion has been scaling down its presence in Germany to concentrate on the Benelux markets. With this acquisition, Tönnies intends to absorb three Vion beef facilities, a deboning plant, and two hide-processing facilities. The deal, which is pending competition approval, has not disclosed the financial details.
If the agreement is finalized, the focus of Vion’s operations in Germany will shift primarily to a beef processing site located in Furth im Wald, situated in the southern part of the country.
Ronald Lotgerink, CEO of Vion, stated, “This anticipated transaction is a significant step in Vion’s strategic realignment.” Furthermore, he emphasized, “We promised to secure the most capable partners to ensure prosperous future development for the businesses to be divested, and we also promised to increase our investments in the retained businesses. We now take another step in fulfilling our commitments.”
Tönnies, headquartered in Rheda-Wiedenbrück, Germany, currently operates 19 sites across the country. The acquisition will augment its capabilities by adding beef facilities in Buchloe, Crailsheim, and Waldkraiburg in southern Germany. Additionally, Tönnies will take ownership of a deboning facility in Hilden and two hide-processing units located in Memmingen and Eching-Weixerau. The transaction also includes “the majority of Vion’s German central support activities,” according to the Dutch company.
This recent merger comes on the heels of Vion’s decision to sell two German sites to Erzeugergemeinschaft Südbayern last month. Moreover, earlier in January, Vion announced the closure of one facility and the sale of three others. In August, Vion revealed that approximately 165 jobs in the Netherlands would be affected as part of its ongoing efforts to streamline operations. The company stated that around 40 “compulsory redundancies” would be necessary due to “changing market conditions requiring adjustments to the size of the organization.”
