Vion Food Group is selling its foodservice division to Dutch meat-processing peer Group of Butchers,
In a statement, Vion, which has been selling assets in Germany, said the deal marks the “final major step” in its exit from the market.
Vion said yesterday (15 June) it had reached "a principal commercial agreement" with Group of Butchers. The financial terms of the transaction were not disclosed.
The deal covers Vion Food Service Holding, Salomon FoodWorld and related subsidiaries, including production sites in the German towns of Großostheim and Holzwickede.
The business supplies frozen beef, pork and chicken products to foodservice customers. Around 650 staff work at the division, Vion said.
Just Food has approached Group of Butchers for comment.
"This transaction brings great value to Group of Butchers, while providing Salomon FoodWorld with an excellent platform to continue its successful growth journey," Vion CEO Tjarda Klimp said.
"Our full focus remains on Dutch livestock farmers, operations, and supply chains, aimed at serving national, European, and further export markets."
Asked by Just Food why Vion no longer sees the foodservice arm as part of the company's strategy to create "long-term value", the company said: "For Vion, creating long-term value is about making deliberate choices about where Vion can create the most value and focusing its resources, investments and capabilities accordingly.
"Food Service is a strong and successful business with significant growth potential. At the same time, Vion’s strategy is increasingly centred on strengthening its integrated value chains and core markets in the Benelux region."
In May, the company agreed to sell its slaughterhouse in the German town of Buchloe to Ireland-based ABP Food Group.
A month earlier, Vion offloaded its sites in Crailsheim and Waldkraiburg to Boeser Frischfleisch and OSI Europe Foodworks, respectively.
In January, the group announced the permanent closure of its deboning facility in Hilden after regulators blocked its proposed sale, with the move affecting 160 employees.
Vion said it is looking for a buyer for Best Hides, its hides processing business in Germany.
