Vion Food Group has plans to sell its Ingredients division, either partially or completely, in order to strengthen the company's financial position. The decision was made by the Board of Vion and the shareholder SLTO.
Preently, Vion Food Group, with a turnover of roughly €9.5 billion, is one of Europe's largest meat processors and for now has two main activities: Food and Ingredients. The two divisions will become completely separated operational, organizational and legal entities.
This decision to separate Food Ingredients relates to the fact that Food and Ingredients both serve different markets and clients with their own company strategies. While Vion Food focuses on the pork and beef market, Vion Ingredients delivers products like gelatin, proteins and fats which can be traced back in a lot of different end markets, such as food ingredients, feed ingredients, pharmaceutical industry, porcelain and even green energy. With the activities of Ecoson, Sonac, Rousselot and CTH, Vion Ingredients is serving a broad and varied spectrum of markets while aiming for sustainable leadership.
Although the earnings before interest, taxes, depreciation and amiotorization were once again positive, the year 2012 has been rough for the holding. The problems, Vion officials said, started when the company didn't succeed to pass the increased purchase prices of pork and raw materials to the retailers and wholesalers and were further stimulated expanding too rapidly to various countries like Great Britain. With the sale of the Ingredients division, Vion wants to arrive at a reduced debt position. A new co-shareholder will be sought to assist in additional progress and growth for Ingredients that already has a strong, healthy financial and organizational basis.
Preently, Vion Food Group, with a turnover of roughly €9.5 billion, is one of Europe's largest meat processors and for now has two main activities: Food and Ingredients. The two divisions will become completely separated operational, organizational and legal entities.
This decision to separate Food Ingredients relates to the fact that Food and Ingredients both serve different markets and clients with their own company strategies. While Vion Food focuses on the pork and beef market, Vion Ingredients delivers products like gelatin, proteins and fats which can be traced back in a lot of different end markets, such as food ingredients, feed ingredients, pharmaceutical industry, porcelain and even green energy. With the activities of Ecoson, Sonac, Rousselot and CTH, Vion Ingredients is serving a broad and varied spectrum of markets while aiming for sustainable leadership.
Although the earnings before interest, taxes, depreciation and amiotorization were once again positive, the year 2012 has been rough for the holding. The problems, Vion officials said, started when the company didn't succeed to pass the increased purchase prices of pork and raw materials to the retailers and wholesalers and were further stimulated expanding too rapidly to various countries like Great Britain. With the sale of the Ingredients division, Vion wants to arrive at a reduced debt position. A new co-shareholder will be sought to assist in additional progress and growth for Ingredients that already has a strong, healthy financial and organizational basis.
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