Vion division attracts PE buyers

First round bids for the division are apparently due by 23 July. According to Reuters, the PE firms currently circling the subsidiary include Advent International, CVC, Apax, BC Partners, Bain Capital, KKR, Blackstone and Cinven.

Vion announced its decision to find a co-shareholder for its ingredients division in April, in a bid to make the subsidiary independent from the group's food business. The company stated at the time that it was in talks with banks regarding a sale. Reuters reported that Bank of America Merrill Lynch is advising on the process.

The sale is expected to come to a close by the end of the year. A number of banks are reportedly putting together a debt package worth €700m-1bn for the buyout.

Vion, which is owned by agricultural association Zuidelijke Land-en Tuinbouworganisatie, is headquartered in Eindhoven with approximately 26,400 staff. Its turnover for 2011 was €9.5bn, with a €90.1m EBITDA. The group's EBITDA for 2012 reportedly stood at €200m.

Vion's UK-based pork division was bought by turnaround firm Endless in December last year.

Dirk Kloosterboer is the CEO of the group's ingredients division, which employs 6,000 staff. Vion's ingredients arm produces ingredients from slaughterhouse by-products, such as fats, gelatine and proteins. The end-products are supplied to the pharmaceutical, cosmetic, food, animal feed, energy and technology industries, according to the company's website.

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