Hilton Food Group PLC Joint Venture (2418T)
04 January 2017 - 6:00PM
UK Regulatory
TIDMHFG
RNS Number : 2418T
Hilton Food Group PLC
04 January 2017
4(th) January 2017
Hilton Food Group plc
Hilton to form Joint Venture with Portugal's leading food
retailer
Hilton Food Group ("Hilton" or "the Group"), the leading
international specialist meat packing business, is pleased to
announce the signing of a 50/50 Joint Venture agreement with Sonae
Modelo Continente ("Sonae"), Portugal's leading food retailer, for
the supply of a wide range of packaged beef, lamb, veal and pork
products to Sonae stores in Portugal. This follows a period of
approximately six months of co-operation (see announcement dated
6(th) July 2016).
Under the terms of the agreement, Hilton will work alongside
Sonae to redevelop the production facilities of its packing and
sourcing subsidiary Sonae Centro Processamento Carnes (CPC), which
supplies Sonae stores in Portugal. CPC currently sources over 1,000
tonnes of packaged meat products per week. Products supplied from
the plant will include mince, roasting joints and other beef and
pork based products. The Joint Venture will be named SOHI Meat
Solutions
The redevelopment of the production facility is expected to be
completed by the end of the second quarter 2017. SOHI Meat
Solutions will supply product to all Sonae's grocery stores and the
partners believe that the Joint Venture will be in a position to
increase the overall volumes supplied to the Portuguese market.
The facility will require an initial investment of EUR22m,
financed principally by the Joint Venture partners. Hilton's share
of the investment will be financed primarily by debt. The Board
expects the new facility to be earnings enhancing in 2017.
Hilton CEO, Robert Watson:
"We are very pleased that this exciting growth opportunity has
advanced to a Joint Venture with Sonae Modelo Continente. Our
progress in Portugal demonstrates further the strength of Hilton's
flexible and versatile business model, enabling us to meet the
local requirements of our customers in their territories. This now
extends our presence to 15 countries, and we will continue to look
for further opportunities for geographic expansion."
Sonae Modelo Continente Commercial Director, Eunice Silva:
"We are pleased that the partnership has progressed to a full
Joint Venture agreement in Portugal, which will enable us to
strengthen the leadership position of Continente further in the
development of innovation and the sustainable promotion of the
agro-food business in Portugal."
Information on Sonae:
Sonae is Portugal's leading food retailer with over 1,200 stores
(including non-food and pharma stores) and a market share of c.
22%. Sonae operates a multi-format portfolio of stores covering
Hypermarkets, Supermarkets as well as Convenience Stores,
predominantly under the Continente banner. Sonae also has a strong
presence in the online sector.
Sonae is a member of the Spain-based purchasing and services
company Grupo IFA
Information on Hilton:
Hilton Food Group is the leading international food packing
company, with expertise in supply chain management and supplying
leading retailers across 14 European countries and Australia.
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regulation.
Enquiries:
Hilton Food Group Tel: +44 (0)1480 387214
Robert Watson OBE,
CEO
Nigel Majewski,
CFO
Citigate Dewe Rogerson Tel: +44 (0)20 7282 2932
Louise Mason
Ellen Wilton
This information is provided by RNS
The company news service from the London Stock Exchange
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January 04, 2017 02:00 ET (07:00 GMT)