Hilton Food expands into Saudi Arabia with new joint venture

(Sharecast News) - Food packaging business Hilton Food Group revealed on Thursday that it has entered into a new joint venture with Saudi Arabia's National Agricultural Development Company, expanding its global reach into the Middle East. Hilton Food said the long-term collaboration, initially for a period of ten years, combines its expertise in meat processing and packaging with NADEC's extensive local cattle operations.

As part of the partnership, Hilton will develop new state-of-the-art facilities in the country, while NADEC will supply the joint venture and integrate its red meat products into its well-established distribution network.

Hilton Food will hold a 49% stake in the new joint venture and contribute 49%, approximately £6.5m, of the initial SAR 60.0m (£13.0m) investment in the new facility.

The FTSE 250-listed group added that the JV was expected to commence operations by H226.

Chief executive Steve Murrells said: "This is a JV which takes Hilton Foods into the Middle East for the very first time, and it brings together NADEC's wide retail distribution network with our market-leading processing and packaging capabilities, underpinned by our shared consumer-led approach to innovation.

"Long-term, Hilton sees significant growth potential in Saudi Arabia and the Middle East, leveraging its expertise and scalable technology to support local partners in these emerging growth markets."

As of 1040 GMT, Hilton Food shares were untraded at 838.0p.

Reporting by Iain Gilbert at Sharecast.com