Swiss meat manufacturer Bell Food Group has announced it plans to sell its German sausage business to the Zur Mühlen Group.
According to Bell, the retail market for meat and sausages in Germany is declining. The firm added that due to an oversupply to the market, it is difficult to pass on the sharp rise in the price of pork to sales prices.
Going forward, Bell’s business in Germany will focus on expanding the group’s position in the segment for high-quality German and international air-dried ham products.
Bell said that the Zur Mühlen Group is “the ideal buyer” for the unit. The German firm will take over Bell’s plants in Suhl and Börger, retaining the 400 employees at both facilities.
However, the sale of the sausage business is expected affect jobs in the administration and central services departments of Bell Germany.
Bell said the sale will reduce its net revenue by CHF 85 million ($87.2 million).
Last year, Bell Food Group secured a deal to acquire soup and sauce producer Hügli. At the time, Bell claimed the deal will it help to achieve significant growth in the convenience food market, estimating that a quarter of the brand’s future revenue will be generated from this sector.
Hügli produces a range of soups, sauces and meat alternatives, operates ten production plants in multiple European countries and employs 1,500 people.
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