POULTRY giant Ranjit Singh has announced the sale of the European operations of 2 Sisters Food Group to his Private office for a fee in excess of €200m.
The arms-length transaction will strengthen 2 Sisters Food Group’s balance sheet and will enable it to reduce net debt levels to the lowest point in over a decade, the company said.
See also: Sainsbury’s launches’ development group’ for egg farmers in its supply chain
The European poultry business – which trades as 2 Sisters Storteboom and employs 2,700 people – will join the ranks of Bernard Matthews, Banham Poultry and Elkes Biscuits in the Private Office, along with Mr Boparan’s portfolio of restaurant businesses.
It is currently part of 2 Sisters parent company Boparan Holdings Limited (BHL).
BHL’s current Bond funding arrangements expire within the next 12 months.
This latest cash injection will give the business options for refinancing when the time comes to address corporate funding in the coming months, a statement said.
Mr Boparan said the money raised would start a ‘Next Generation’ investment programme, heavily focused on “ambitious sustainability goals and investment in food processing technologies”.
Mr Boparan said: “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.”