Hilton Food to buy 50% stake in Dutch manufacturer Dalco

Food packing business Hilton Food has agreed to by a 50% stake in Dutch vegetarian product manufacturer Dalco, subject to clearance from the Dutch competition authority.

Hilton has agreed to enter into a joint venture agreement with Dalco's shareholders, which includes an option for the remaining 50% of Dalco's shares in 2024.

The FTSE 250 company said the agreement enables it to significantly expand its offering in the fast-growing vegetarian market. Hilton will provide its manufacturing expertise and capital resources to enable Dalco to expand its range into the next generation of vegetarian products servicing both Dalco's existing customers and Hilton's customer base.

Hilton chief executive Philip Heffer said: "This agreement represents an exciting opportunity for Hilton to broaden its offering in a growing segment of the market and meet our customers' demands for Hilton to supply them with a range of innovative, high quality vegetarian products. We look forward to seeing the positive effects of our tried and tested business model on this relationship, which will be supported by our flexible and versatile approach to meeting local requirements."

Dalco CEO Marian Wagemakers said: "We are pleased to have signed this joint venture agreement with Hilton and look forward to the benefits and expertise that this brings to our business and that we can bring to Hilton's business. It will enable us to expand our operations and continue to focus on giving our customers the right choices at competitive prices. I value the mutual respect and cultural similarities which will provide a strong base for a successful joint venture."