Hilton Food Group (HFG) is pressing on with its Australian expansion with an extension to its joint venture agreement with Woolworth’s Group. Hilton has agreed to take control of operations at meat processing plants in Bunbury and Truganina from July this year, and then plans to buy both sites two years later for AU$85m (£48m). The deal will be paid for either in cash or through equity. Another processing plant has also been commissioned in Queensland.
Australia has been a key source of growth for Hilton. At the half-year results in September volumes in Australia improved by 15 per cent while income from service fees was up by a third. The food group is aiming for a broad geographic spread of customers so that it’s not too reliant on any particular region.
