The break-up of Vion’s UK operations has started, with its pork business being bought by management today.
The MBO covers Vion’s entire pork business, which comprises sites in Cookstown in Northern Ireland, Aberdeenshire in Scotland and seven sites in England as well as the McGees butcher’s business in the Republic of Ireland.
The deal is being led by Vion UK pork MD Seamus Carr, who will become managing director of the new company. Funds are being provided by private-equity firm Endless; financial details of the deal were not disclosed.
The deal will secure about 4,000 jobs and will require competition clearance from Irish regulators. The name of the new company has not yet been announced.
Carr said Vion’s decision to withdraw from the UK market had caused uncertainty for the company’s staff, suppliers and customers. “Therefore, I’m very pleased that we have quickly been able to agree a deal for the pork business, which secures the future for our staff, our suppliers and gives our customers a seamless transition,” he added.
“Our ambitions for the new business are firstly to maintain the excellent levels of service and product quality which have helped us secure orders from all the major supermarkets and then to build upon the opportunities in the marketplace to grow the business,” Carr said.
Vion UK chairman Peter Barr welcomed the MBO and said the fact Vion’s pork business had been sold so quickly “underlines our confidence in the sales process”.
He added sales discussions continued for Vion’s other operations in poultry and red meat. “Both businesses remain profitable and cash-generative and are generating significant interest from prospective buyers,” Barr added.
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