The poultry arm of 2 Sisters Food Group, which is owned by the so-called ‘Chicken King’ Ranjit Singh Boparan, is to be sold to his private office for more than €200m (£168m).
Boparan, who also owns high street restaurant brands like Carluccio’s and Gourmet Burger Kitchen, is to sell the European poultry operation to his private office (BPO).
The division is currently part of 2 Sisters parent company, Boparan Holdings (BHL).
The arm trades as 2 Sisters Storteboom and employs 2,700 people and will join the likes of Bernard Matthews, Banham Poultry and Elkes Biscuits along with the restaurant businesses.
Boparan said: “This is a significant and transformational deal and unlocks many opportunities for the future, so we are very pleased to announce an agreement has been reached.
“All my companies will benefit as it creates a stronger, more agile group of businesses and provides a platform for an unprecedented level of internal investment.
“As well strengthening BHL, it gives the European poultry business, under the BPO, a dedicated regional focus on its European markets, unlocking undoubted growth opportunities through a focus on quality, animal welfare and sustainability.”
Boparan Holdings said that the deal would help strengthen 2 Sisters Food Group’s balance sheet and “will enable it to reduce net debt levels to the lowest point in over a decade”.
It added that the transition would “activate radical plans” that Boparan is calling his ‘next generation’ investment programme.
This programme will “heavily focus on ambitious sustainability goals and investment in food processing technologies”.
Boparan Holdings also said the cash injection will give it options for refinancing its bond arrangements in the coming months.
According to its most recently-published accounts, for the 12 months to 1 January, 2023, Boparan Private Office posted a turnover of almost £1.6bn and a pre-tax profit of £90.2m.