14th Sep 2023 08:45
(Alliance News) - Hilton Food Group PLC on Thursday said it has signed a long-term agreement with Walmart Inc to supply its Supercentres in Canada.
Hilton Food Group shares were up 6.6% to 774.00 pence early Thursday in London.
The agreement was signed with Wal-Mart Canada Corp, a subsidiary of the Bentonville, Arkansas-based retailer.
Huntingdon, Cambridgeshire-based Hilton Food will open a new manufacturing facility in eastern Canada to supply Walmart stores with Walmart Brand protein products, including beef, lamb, pork and seafood. The facility will provide robotised store order picking into Walmart's distribution centres. Production is targeted for 2026.
A newly formed Canadian subsidiary, Hilton Foods Canada Inc, will finance the new packing facility. Hilton Foods said it will lease the production facility and use debt finance for the plant and equipment. Group debt leverage is expected to remain at "comfortable levels" during the investment period.
"This agreement further extends our global footprint and will be our first manufacturing facility in North America," Hilton Foods Chief Executive Officer Steve Murrells said.
Added Sourabh Malik, vice president for Food at Walmart Canada: "The new protein processing solution with Hilton will ultimately provide Canadians with fresh, consistent Walmart Brand protein in the sizes and cuts they're looking for."
By Tom Waite, Alliance News editor
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