Hilton Food Group signs JV with Portugal's Sonae Modelo
Hilton Food Group has signed a joint venture agreement with Portuguese food retailer Sonae Modelo Continente for the supply of a wide range of packaged beef, lamb, veal and pork products to Sonae stores in Portugal.
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Hilton Food Group
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Under the terms of the agreement, Hilton will work alongside Sonae to redevelop the production facilities of its packing and sourcing subsidiary Sonae Centro Processamento Carnes, which supplies Sonae stores in Portugal.
The joint venture will be called SOHI Meat Solutions and products supplied from the plant will include mince, roasting joints and other beef and pork based products.
The redevelopment of the production facility is expected to be completed by the end of the second quarter of 2017.
The facility will require an initial investment of €22m, financed principally by the JV partners. Hilton's share of the investment will be financed primarily by debt and the board expects the new facility to be earnings-enhancing this year.
At 0920 GMT, the shares were up 5.4% to 679.88p.