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Hilton Food Group (HFG:LSE) snaps up salmon producer Foppen

By Adrian Holliday

09:34, 10 December 2021

A juicy salmon steak on a plate with lemon slice
Juicy salmon steak on a plate with lemon slice – Photo: Shutterstock

International food business group Hilton Food confirmed through a press release on Friday that it is buying Dutch salmon business Foppen.

The move means Hilton expands its protein category market share and gives it a US entree – its first. 

The news had little impact on the FTSE 250 company’s share price, opening at 1190p and rising to a little over 1195p in early trading this morning, though its shares rose more than 4.3% in the last week. 

‘Excellent opportunity’ says CEO Heffer

The £90m ($118.8m) acquisition will be funded by an equity placing aiming to raise £75m. The balance will be funded by an acquisition bridge facility, though the £75m equity placing will also partly re-finance its existing Fairfax Meadow acquisition – a major UK catering butcher, bought in October for £24m.

“The acquisition of Foppen is an exceptional opportunity, Hilton Food Group chief executive Philip Heffer said earlier. “More and more consumers around the world are seeking affordable, high-quality, and sustainable protein, and this acquisition will help Hilton take our offer into new markets and to new global customers for the first time.”


41,885.90 Price
-4.360% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Oil - Crude

71.18 Price
-0.140% 1D Chg, %
Long position overnight fee -0.0213%
Short position overnight fee -0.0006%
Overnight fee time 22:00 (UTC)
Spread 0.030


0.62 Price
-6.700% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


1,981.68 Price
-1.100% 1D Chg, %
Long position overnight fee -0.0199%
Short position overnight fee 0.0117%
Overnight fee time 22:00 (UTC)
Spread 0.30

Heffer adds that Foppen’s product portfolio is a natural fit for Hilton, “while Hilton’s strong ESG credentials in seafood will make sure our future growth plans are sustainable in every sense of the word”.

Procurement savings

The Foppen acquisition should deliver procurement savings says Hilton Food Group, bringing with it dedicated smoked salmon facilities in Harderwijk, the Netherlands and Preveza, Greece, plus an experienced management team.

“We are excited by the future prospects of Foppen under Hilton's ownership,” said Foppen CEO Andre van der Padt, “and look forward to working with Philip and the team. Foppen’s offer to customers, suppliers and employees will be enhanced as part of Hilton Food Group.”

Hilton Food Group’s year high share price is 1,298p; currently, the dividend yield for the FTSE 250 player is 2.17%.  

Read more: Anglo American (AAL) predicts 35% growth over the next decade

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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