Market Bell Food Group sells German sausage business

by Editor fleischwirtschaft.com
Monday, June 24, 2019
In the sausage products business, Bell Food Group has a subordinate market position with a market share of less than 1% and correspondingly weak prospects.
Photo: Bell Food Group
In the sausage products business, Bell Food Group has a subordinate market position with a market share of less than 1% and correspondingly weak prospects.

The Bell Food Group is focusing on its strong position in the raw ham segment and will continue to expand this position. To this end, it is divesting its sausage products business in Germany and selling it to the Zur Mühlen Gruppe.

The market for meat and sausage products in Germany is declining in the retail sector. Due to an oversupply on the market, it is difficult to pass on the sharp rise in pig prices to sales prices to the extent required. In the sausage products business, Bell Food Group has a subordinate market position with a market share of less than 1% and correspondingly weak prospects.

The ideal buyer was found in Zur Mühlen Group, as the Group has a corresponding market position. All of the approximately 400 employees at the Suhl and Börger locations affected will be taken over by the Zur Mühlen Gruppe as part of a transfer of operations. The transaction is subject to the approval of the responsible competition authorities. The parties have agreed not to disclose any details of the purchase.

The discontinuation of the sausage products business in Germany will have a positive impact on Bell Food Group's cash flow and EBIT of around CHF 10 mill. per year from 2020. In addition, the dependence on fluctuations in raw material prices will decrease. For the 2019 financial year, the sale will result in non-cash one-off costs of around CHF 35 mill.

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