Ranjit Singh Boparan has carried out the sale of poultry assets in Europe held by his family-owned 2 Sisters Food Group to his private investment vehicle.
In a statement, 2 Sisters Food Group said the deal – struck for “in excess” of €200m ($221.2m) – sees the assets move from its holding company Boparan Holdings to Boparan Private Office.
The business sold trades as 2 Sisters Storteboom and employs more than 2,700 people.
2 Sisters Storteboom, which supplies a range of chicken products, has six processing sites in the Netherlands and three in Poland.
When the deal is finalised – 2 Sisters said the transaction is awaiting regulatory approval in Poland – the poultry assets will join the likes of Bernard Matthews and Elkes Biscuits in the Boparan Private Office portfolio.
In a statement issued by 2 Sisters, the company said the “arms-length” deal would “strengthen” its balance sheet and allow it to cut its net debt “to the lowest point in over a decade”.
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Boparan Holdings’ bond funding arrangements expire within the next year. The deal will also “give the business options for refinancing when the time comes to address corporate funding in the coming months”, the statement read.
Mr Boparan added: “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.
“As well 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 March, Bernard Matthews confirmed plans to close its cooked meats factory in Great Witchingham in eastern England. Cooked meat production was moved to the company’s other five sites in the country, located in Holton, Derby and Sunderland.
According to accounts filed with Companies House for the year ended 1 January 2023, Bernard Matthews posted revenue of £284.8m ($361.1m), compared to £270.8m in the corresponding 12-month period.
Operating profit losses narrowed to £9.6m from a £25m loss. Net profit was also in the red at £7.9m versus a £20.9m loss.
