LONDON, February 26, 2018 /PRNewswire/ --
Hilton Food Group plc ("Hilton") and Woolworths Group LTD today
announce the agreement to restructure their Australian meat
processing joint venture. This agreement includes long term
contracts for Hilton Foods Australia ("HFA") to supply Woolworths
Supermarkets with packaged and value-added meat products.
Hilton will begin full operational control of the Bunbury and
Truganina plants from 1 July 2018. At
the end of a transitional period of two years, Hilton Foods
Australia will acquire the relevant plant assets for a book value
expected to be AU$85m, for either cash or equity consideration (in
the form of a minority equity stake in HFA). During this
transitional period, HFA will commission a new meat processing
plant in Queensland.
This extension to the current partnership between the two
companies will enable Hilton to continue to service Woolworths with
best in class quality, availability and innovative meat products
across Woolworth's expansive store network under these long term
15-year contracts.
Robert Watson OBE, Chief Executive of Hilton commented: "We look
forward to welcoming the Woolworths employees in Bunbury and
Truganina to our team. We have been working closely with Woolworths
for five years and we have a deep understanding and respect for
each other. Our long term partnership with Woolworths is growing
and this is the next phase of an even stronger relationship. The
long term contract between us displays the mutual trust we have in
our partnership and Hilton looks forward to working with the
Woolworths team to strengthen further our world class meat offer in
Australia."
Pat McEntee, Woolworths Director
of Meat said: "Woolworths is pleased with the value the current
joint venture has created within its meat supply chain and is
excited to extend the partnership with Hilton to deliver
affordable, innovative and convenient protein choices for its
customers."
Hilton Food Group in Australia
- Current Status
Hilton announced on 10th January
2013 that it was to enter into a joint venture agreement
with Woolworths LTD through a 50 per cent interest in a new
company, Woolworths Meats Co Pty, to operate the Bunbury Meat
Centre in Bunbury, Western
Australia. On the 20th August
2013, it further announced that it was to proceed with plans
to construct a new meat processing facility in Victoria, Australia. These plants have been
operating for some time now as part of the Woolworths Meat Co, with
all the operating assets currently owned by Woolworths.
On 6th December 2016, Hilton announced plans to construct a
new meat processing facility in Queensland, to supply Woolworths. The facility
will be owned by Hilton Foods Australia, its 100% owned Australian
operating company. The facility is currently under
construction.
About Hilton:
Hilton Foods is Europe's leading
specialist fresh meat retail packing company supplying major
retailers including Tesco, Ahold, ICA, Coop Danmark and Sonae in
Europe and Woolworths in
Australia. Hilton had sales of
£1.2 billion in 2016 and employs around 3,000 people across its
sites.
Each of Hilton's central meat packing plants are operated on a
dedicated basis for Hilton customers. Hilton's business model has
been adapted to meet local requirements with customers in each
country.