Hilton Food Group (LSE:HFG), the international red meat supplier, has agreed to sell Dalco Food B.V., its Dutch-based vegan and vegetarian business, to Livekindly Production NL B.V. for total consideration of £5.4m.
The deal remains subject to standard approvals, including consultation with the local works council.
Dalco made an adjusted operating loss of approximately £2m in the first half of 2026, a drag the Group expects to report as a loss from discontinued operations.
The disposal fits Hilton's stated strategy of concentrating investment on its core meat and fresh prepared food businesses, while looking to improve performance and extract value from its Seafood, Vegan and Vegetarian units.
Dalco is expected to be classified as an asset held for sale in the Group's 2026 interim results, due on 3 September.
News Intelligence what this means for the company
Hilton Food Group is divesting its loss-making Dutch vegan unit Dalco to Livekindly Production for £5.4m, crystallising a £2m annualised operating loss in the first half of 2026. The sale aligns with management's stated strategy to concentrate on core meat and fresh prepared food businesses, though the deal remains subject to works council approval and will be reported as a discontinued operation in the interim results due 3 September.
The disposal removes a drag on reported earnings but does not materially alter Hilton's capital position or strategic direction—the company has already signalled its focus on core meat and prepared foods. The £5.4m proceeds are modest relative to the group's scale and do not address the underlying challenge of deploying capital efficiently across its portfolio.
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