Ranjit Singh Boparan’s private office has acquired sister company 2 Sisters Food Group’s joint venture poultry farming operation, in a move that will see the ‘Chicken King’ take full control of his poultry supply chain.
The company known as Hook 2 Sisters was established in 2006 as a 50/50 partnership between 2 Sisters Food Group and PD Hook Group. It specialises in the rearing and growing of broiler chickens and turkeys.
The deal, the value of which was not disclosed, sees Boparan Private Office subsidiary 2 Agriculture Holdings acquire all shares in the JV, which posted sales of £961m in the year to 31 July 2024.
Moving from a partnership to full ownership model was a “significant transaction and will establish a fully integrated agricultural supply chain that enhances quality and welfare standards for the sector, securing UK food for the future”, Singh said.
It is understood the governance of the JV, with no overall control of the operation from either party, had become more difficult within the business in recent years.
As part of the deal, PD Hook-owned rearing, breeding and hatching farms and assets that support the current joint venture will be sold to 2 Agriculture Breeding Limited, which is also part of the BPO. The transaction is due to complete by August.
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PD Hook will retain and continue to operate two hatcheries (Cote and Dalton) together with the supporting rearing and breeding farms “which will allow them to continue to focus on the supply of day-old quality chicks to the independent market”, Singh said.
2 Agriculture Holdings, PD Hook, and 2 Sisters would also continue to work in collaboration into the future, “focusing on maintaining the highest welfare standards for poultry and transforming the future of food”, he added.
The move means the BPO is now worth more than 2 Sisters Food Group itself, with combined sales well in excess of £3bn from companies such as the former 2 Sisters European poultry operation, Holland’s Pies, Banham Poultry, Elkes Biscuits and a number of high street restaurant chains such as Giraffe and Carluccio’s.
2 Sisters’ parent Boparan Holdings rebounded into the black following several years of losses in its most recent accounts.
Coming off the back of a major restructuring of the business – which included the offloading of its loss-making European poultry business to the BPO – the poultry giant posted pre-tax profits of £35.5m in the year to 27 July 2024, up from a £28m loss in the previous accounting period.
Turnover rose by 0.5% to £3.05bn, its accounts showed.
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