Horse meat scandal prompts local business acquisitions

Wed, 06 Mar 2013 | BUSINESS SALE

The horse meat scandal surrounding beef products stocked by supermarkets in Britain has spurred on the acquisition plans of one food company. 2 Sisters has bought Dutch company Vion's UK poultry and red meat processing business, which was originally put up for sale last November.

The decision to buy a local meat business comes just weeks after the horse meat scandal rocked consumer views on supermarket meat products. Tesco chief executive Philip Clarke has since pledged at the National Farmers' Union conference that the company will focus on local sourcing from now on to avoid a similar situation arising in the future.

A statement from 2 Sisters to the FT confirmed that the purchase is directly related to this: "It's no coincidence that within a week of Philip Clarke, Tesco chief executive, standing up and saying Tesco will source all chicken locally, we are buying a company that sources poultry purely from the UK."

The price of the deal with Vion has not been confirmed but the acquisition is thought to be around the same size of the recent 2 Sisters' acquisition of Brookes Avana, which it bought from Premier Foods for £30 million.

2 Sisters had a turnover of £2.3 billion in the year to the end of July 2012, but this latest deal will boost that figure to around £3.3 billion. This puts the firm in a favourable position against its competitor Premier Foods, which has been taking an opposite approach and selling a number of its assets to concentrate its business.

Vion, meanwhile, has taken the decision to exit the UK in light of rising input inflation as poor harvests have pushed up the cost of livestock feed. These shifts in the market and 2 Sisters' appetite for acquisition appear to be putting the company in a good position for future expansion.

Related articles:
Expanding you business for M&A
Opinions divided on Northern Foods brand sales
Premier Foods sells Branston and Hartley's
Premier Foods sounds out sale of Hovis

Share this article

Latest Businesses for Sale

Precision Cutting Tools Provider
North East, UK

Operates across a diverse range of sectors, with no reliance on any key client accounts. Skilled workforce with extensive expertise within the sector. Operates from leasehold premises in North East England. Offers invited

Asking Price: Offers Invited
Turnover: £685,000


Electrical Appliance Retailer & Wholesale
Stalybridge, Manchester, UK Wide

The business for sale is a family owned, electrical appliance retailer and wholesaler based in Stalybridge, Greater Manchester. This business sells a wide range of freestanding and integrated kitchen and home appliances from washers, dryers, sinks, k...

Asking Price: £260,000
Turnover: £938,603


Furniture Manufacturing Company
Surrey, South East, UK

Now available to the market is this brilliant furniture manufacturing company in the south of England. Trading since 1996, this family run business has been supplying high quality wardrobes complete with sliding or hinged doors, with the ability to m...

Asking Price: £599,995
Turnover: £935,135


View more businesses for sale

News Search

Latest News


KPMG agrees to sell pensions arm | DIVISION SALE

Professional services network KPMG has announced that it has...


What a Labour government would mean for UK entrepreneurs | BUSINESS NEWS

Private business mergers and acquisitions expert Sue Green o...


MBO at Bolton-based delivery comparison firm | MBO/MBI

Bolton-based parcel delivery price comparison company Parcel...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide


Related News


Bernard Matthews bought out of administration in pre-pack deal | ADMINISTRATION

Household name turkey producer Bernard Matthews has been acq...


North Wales lamb abattoir for sale | DIVISION SALE

The former Welsh Country Foods abattoir at Gaerwen in Wales ...


Comet announces further job cuts | ADMINISTRATION

Comet, the electrical retail outlet that has recently fallen...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources