Hilton Food Group has reached agreement to acquire the remaining 50% of its joint venture partner Dalco Food B.V..

Dalco is a leading vegan and vegetarian product manufacturer, based in the Netherlands.

Completion of this acquisition is subject to clearance from the Dutch competition authority.

Robert Watson, one of the co-founders of the Foyle Food Group, is the current Hilton chairman.

Vegan market

Since Hilton became a 50% shareholder in Dalco in 2019, it has leveraged its manufacturing expertise and capital resource to further expand Dalco’s range into the next generation of vegan and vegetarian products.

During this period, Dalco has grown significantly and performed ahead of management’s expectations.

The acquisition of Dalco is in-line with Hilton’s strategy to further diversify and strengthen its protein offering within the fast-growing and attractive vegan and vegetarian market, according to the company.

The agreement will build on the success of the existing partnership between Hilton and Dalco and will see Hilton commit ongoing investment in order to significantly increase its capacity to customers, grow its ranges, and develop new, innovative, plant-based products.

As part of this acquisition, Dalco’s current management team will continue to play a role in helping Hilton deliver its ambitious goals.

'Natural step' forward

Commenting on the agreement, Hilton CEO Philip Heffer, said:

“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.

“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."

Marian Wagemakers, CEO of Dalco, added:

“Hilton has been a supportive joint venture partner of Dalco, and we are pleased to now become a full part of the Hilton Food Group.

This transaction will enable continued investment in the business and it will underpin the next stage of Dalco’s growth.

"As a management team, we look forward to achieving further growth with this business and being part of its continued success," she concluded.