Vion Food Group has decided to divest its foodservice division to the Dutch meat processing company, Group of Butchers.
In their announcement, Vion noted that this transaction represents a “final major step” as they withdraw from the German market, where they have been selling off various assets.
On June 15, Vion disclosed that it had come to “a principal commercial agreement” with Group of Butchers, although financial specifics of the deal have not been revealed.
This agreement encompasses Vion Food Service Holding, Salomon FoodWorld, and associated subsidiaries, including production facilities located in the German towns of Großostheim and Holzwickede.
The division specializes in providing frozen beef, pork, and chicken products to the foodservice sector, employing around 650 individuals.
Just Food has sought a comment from Group of Butchers regarding this acquisition.
Vion CEO Tjarda Klimp stated, “This transaction brings great value to Group of Butchers, while providing Salomon FoodWorld with an excellent platform to continue its successful growth journey.”
“Our unwavering focus is on Dutch livestock farmers, our operations, and supply chains, to serve not only national and European markets but also those further afield.”
When questioned by Just Food about why the foodservice division is no longer aligned with their strategy for “long-term value,” Vion explained: “For Vion, creating long-term value involves making strategic decisions about the areas where we can provide the greatest value and directing our resources, investments, and capabilities accordingly.”
“Food Service is indeed a robust and thriving business with notable growth potential. However, Vion’s strategy is increasingly oriented towards enhancing its integrated value chains and core markets within the Benelux region.”
Earlier in May, the company agreed to sell its slaughterhouse located in Buchloe, Germany, to Ireland’s ABP Food Group.
A month prior, Vion also sold its facilities in Crailsheim and Waldkraiburg to Boeser Frischfleisch and OSI Europe Foodworks, respectively.
In January, the company announced the permanent closure of its deboning facility in Hilden following regulatory hurdles that blocked a proposed sale, affecting approximately 160 employees.
Currently, Vion is seeking a buyer for its Best Hides business, which processes hides in Germany.