Hilton Food, a British food packaging company, announced an agreement to sell its Netherlands-based vegan and vegetarian unit, Dalco Food, to Dutch firm Livekindly Production for £5.4 million. The transaction is part of Hilton Food’s strategy to streamline its operations and concentrate on its core meat and fresh prepared food segments.

The company stated that its focus on meat and fresh prepared foods offers higher returns compared to its plant-based ventures. The sale of Dalco Food reflects this strategic pivot as Hilton aims to strengthen its position in its primary markets.

Dalco Food, headquartered in the Netherlands, specialises in vegan and vegetarian products, a sector that has seen significant growth in recent years. However, Hilton’s decision signals a shift away from diversification toward consolidating resources in its traditional business areas.

Livekindly Production, a Dutch company active in plant-based food products, will acquire Dalco Food as part of its expansion plans in the vegan and vegetarian market. The deal is expected to enhance Livekindly’s product portfolio and market reach within Europe.

Financial details beyond the agreed sale price have not been disclosed. The timing for the completion of the acquisition was not specified in Hilton Food’s announcement.