Northern Ireland-based Hilton Food Group has announced changes to its joint venture meat processing business in Australia, which is operated in a 50:50 joint venture with Australia’s largest supermarket chain, Woolworths.

Under the terms of the restructure, Hilton will acquire full operational control of two meat processing plants in Australia from July 2018. After a two-year transitional period, Hilton will acquire outright these processing plants for a sum of €54m, to be paid either in cash or via a minority equity shareholding in Hilton Foods Australia business.

Also as part of the restructure, Hilton has signed new long-term contracts to supply packaged and value-added meat products to Woolworths, which controls almost 40% of the Australian grocery retail market.

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Hilton and Woolworths first entered a joint venture partnership in Australia in 2013. Hilton’s share of profits from this joint venture partnership exceeded £3m (€2m) in 2016, with sales volumes growing at double digit pace in recent years.”

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