The 2 Sisters Food Group has agreed a deal to sell its Matthew Walker Christmas puddings unit as part of ongoing moves to restructure its business to focus on core operations.
Almost six months on from when it was first revealed that it was looking to dispose of the world’s oldest maker of Christmas puddings, 2 Sisters Food said that it has now entered into a binding contract to sell Matthew Walker to Valeo Foods for £67m.
The business, based at Heanor, Derbyshire, supplies branded and own label products to retailers including Aldi, Ocado and Harrods.
The deal adds another name to Dublin-based Valeo Foods growing portfolio of well-known food brands, which includes Jacobs, Rowse Honey, Batchelors, and Balconi.
Ranjit Singh, President of of 2 Sisters parent company Boparan Holdings, said: “It is another significant deal, with good enterprise value, underlining our commitment to transforming our business. It strengthens our balance sheet even further and shows we are following through with our promises by focusing on our key strengths.”
Ronald Kers, the group’s CEO, added: “This sale is further good news as we continue at pace with our turnaround plan. We remain very much on track to meet our strategic aims of focusing on our core businesses and improving our operational performance.”
Seamus Kearney, the Chief Executive of Valeo, said the Matthew Clark deal “will provide us with exciting opportunities for growth in both existing and new channels and markets”.
The acquisition will add approximately €40m in sales to Valeo Foods, taking annualised sales for the group to more than €1bn. The group recently reached an agreement with the Campbell Soup Company to acquire its European crisp business in a deal worth around £66m.
2 Sisters Food has been closing some underperforming sites and off-loading non-core businesses as part of its group restructuring plan aimed at cutting debts and restoring profit growth.
Simon Harvey, Food Correspondent at GlobalData, commented: “2 Sisters has sold off assets since it was embroiled in a hygiene scandal linked to a poultry plant in the West Midlands in 2017, an episode that grabbed media attention and led to the UK Government’s involvement. The bad press hurt confidence among retail customers and consumers alike, and pushed the firm into the red.
“Hail ex-Müller executive Ronald Kers, who was brought in as 2 Sisters CEO last summer to lead the charge in getting the business back on track. His objectives: streamline the 2 Sisters portfolio, cut debt, get retailers on board again and return to profit.
“Is it job done? Probably not. Kers has indicated a new focus on the ‘core categories’ of poultry and ready meals. In 2011 when 2 Sisters was still a pure-play poultry processor, Boparan bought Leeds-based Northern Foods, and with it, Holland’s Pies, Fox’s Biscuits, Matthew Walker, Donegal Catch, Green Isle Brands, and Goodfella’s Pizza. Only the first two of those are left.
“Holland’s Pies has been touted as a disposal candidate before, last year in fact, although 2 Sisters batted down the speculation. Then there’s biscuits with more recent speculation about the future of Fox’s.
“For his part, Boparan has been investing and creating jobs at Fox’s but is that a sign of longer-term interest or a method of buttering the company up ready for sale?”
