Vion Group to sell German beef operations to Tönnies Group in strategic restructuring
(Image credit: Vion).06 Sep 2024 --- Tönnies Group plans to acquire a majority of Vion Group’s German beef business, including its deboning facility in Hilden, the hide processing plants of BestHides in Memmingen and Eching-Weixerau, along with the majority of Vion’s German central support operations.
The family meat business will also acquire Vion’s beef operations in Buchloe, Crailsheim (including pork) and Waldkraiburg as part of the deal, the financial details of which have not been disclosed.
The development comes after Vion announced key business changes in Germany in January 2024, to shift focus to the Benelux.
“This anticipated transaction is a significant step in Vion’s strategic realignment. We promised to secure the most capable partners to ensure prosperous future development for the businesses to be divested, and we also promised to increase our investments in the retained businesses,” says Vion’s CEO Ronald Lotgerink.
“We are confident that Tönnies Group will provide the support and focus needed for continued growth and success.”
The agreement is subject to approval from competition authorities and closing conditions and is expected to materialize next year.
In June, Vion announced an increased focus on production and sourcing in the Benelux region, including potential changes in its operational structure.
Restructuring plans
Vion notes that its South German beef operations are known for delivering high-quality output amid strong domestic and international consumer interest. The company expects Tönnies Group’s impending acquisition to expand business while maintaining supply chains and customer support.
Vion will keep its stake in the Furth im Wald beef facility in South Germany, with other commercial relationships continuing as usual.
As part of its restructuring plans, the Dutch meat and plant-based alternatives player signed an agreement last month to sell its shares in the Vilshofen and Landshut sites to Erzeugergemeinschaft Südbayern (EG Südbayern), which previously held a 49% stake in these sites. The transaction is expected to close later this year.
Last month, a Vion survey revealed that more than a third (38%) of German consumers prefer to buy meat from the country, with most looking for three criteria: quality, freshness and value for money.
