Ranjit Singh Boparan is planning a “transformation” of his businesses, after announcing the intention to sell his European poultry business.
Boparan, the owner of 2 Sisters Food Group said he planned to sell his European poultry operation, currently part of 2 Sisters parent company Boparan Holdings (BHL), to his private Office (BPO) for a fee in excess of €200m.
The European poultry business – which trades as 2 Sisters Storteboom and employs 2,700 people – will join the ranks of Bernard Matthews, Banham Poultry also owned by BPO.
2 Sisters Storteboom comprises six poultry processing centres in the Netherlands based at Nijkerkk, Barneveld, Putten, Kornhorn and Zeewolde. It also has three processing centres based in Poland in Kotowo, Augustowo and Komorniki.
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.”
The arms-length transaction will strengthen BHL’s 2 Sisters Food Group’s balance sheet and will enable it to reduce net debt levels to the lowest point in over a decade. Boparan said it would enable a ‘radical’ investment plan he called his ‘Next Generation’ investment programme.
This programme will focus on ambitious sustainability goals and investment in food processing technologies.
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.
The European poultry sale is subject to Polish anti-trust approval with an anticipated completion date later this month.