The deal, which is subject to clearance from the Dutch competition authority, will see HFG enter a joint venture (JV) agreement with Dalco Food, based in Oss, the Netherlands.
HFG has agreed to enter into the JV with Dalco’s shareholders, which includes an option for the remaining 50% of Dalco’s shares in 2024.
Hilton, which supplies major food retailers in Europe and Australia, said the deal with Dalco, which has two manufacturing plants in the Netherlands, would enable it to significantly expand its offering in the “fast-growing vegetarian market”. It will provide its manufacturing expertise and capital resources to help Dalco to expand its range.
HFG CEO Philip Heffer said: “This agreement represents an exciting opportunity for Hilton to broaden its offering in a growing segment of the market and meet our customers’ demands for Hilton to supply them with a range of innovative, high-quality vegetarian products. We look forward to seeing the positive effects of our tried and tested business model on this relationship, which will be supported by our flexible and versatile approach to meeting local requirements.”
Dalco CEO Marian Wagemakers said the company was looking forward to the benefits and expertise this will bring to the business.
“It will enable us to expand our operations and continue to focus on giving our customers the right choices at competitive prices. I value the mutual respect and cultural similarities which will provide a strong base for a successful joint venture,” said Wagemakers.
Panmure Gordon analyst Matthew Webb said this was a “positive strategic move” by HFG, “further developing its presence and expertise in another growing protein category”.