FTSE 250 listed company Hilton Food Group has reached an agreement to acquire the remaining 50% shareholding of vegan and vegetarian manufacturer Dalco Food. Netherlands-based Dalco will now be fully acquired by Hilton, as the UK meatpacker looks to diversify into the alt protein sector.
Having become a 50% shareholder in Dalco in 2019, Hilton is buying the remaining shares subject to clearance from the Dutch competition authority. The move is part of the meatpacking company’s strategy to strengthen its protein offering within the fast-growing vegan and vegetarian market.
Dalco has grown significantly on the back of increased growth in the alt protein sector recently and has performed ahead of Hilton’s expectations prior to the full acquisition. Dalco’s current management team will continue to in their roles as Hilton will look to continue the brand’s growth, with new product ranges and plant-based products in the pipeline.
Big Meat goes plant-based
Hilton becomes the latest in the long list of meat industry companies that are increasingly investing in the plant-based sector, with meat giants like Cargill, JBS, and Tyson all putting their money into the growing vegan market.
“Dalco is an outstanding business with a market leading vegan and vegetarian offer. Hilton and Dalco have had great success to date, and as part of this agreement, I look forward to driving forward Dalco’s continued growth,” stated Hilton CEO Philip Heffer.
“This is the next natural step in our ambitions to broaden and diversify Hilton’s multi-protein offer. The completion of this transaction will further strengthen Hilton’s position within the vegan and vegetarian market, at a time when our customers are increasingly seeking out innovative, high quality vegetarian products at scale,” he added.