OSI Group Continues Its International Expansion

OSI Group Creative Foods Europe
OSI Group Creative Foods Europe

OSI Group has been actively expanding its operations over the past two years. In the summer of 2016, the company purchased a food processing facility and storage warehouse in Chicago that used to be operated by Tyson Foods. The facility encompasses 20,000 square feet and is conveniently located near another OSI property.  This purchase has allowed the company to continue growing into the future.

OSI Group’s customers’ needs are changing at a rapid pace, and the extra space makes it possible for OSI Group to meet those needs, according to Kevin Scott, senior executive vice-president of OSI North America. The group was very enthusiastic about bringing the “new” facility into the broader OSI network.

The Group declined to state the terms of the sale.

Tyson used the plant for its prepared food operations, but the company announced that it would be closing the facility in 2015, according to a Tyson spokesperson. The spokesperson also stated that they would close a second facility in Jefferson, Wisconsin, so that the company could focus on improving productivity. Tyson has other processing plants, and the workload from the two plants that are closing will be transferred to other plants that are available to absorb the extra capacity.

OSI Group currently has its headquarters in Aurora, Illinois, and it leads the way in providing the world with value-added protein items and other types of foods. OSI Group maintains in excess of 65 facilities in a total of 17 countries.

Baho Food

Continuing its quest to increase its number of facilities, OSI Group also acquired a controlling stake in Baho Food in 2016. Baho Food is a manufacturer of snacks, deli meats and convenience foods that provide products for retailers and food service companies. Again, the financial details of the sale were kept private.

This acquisition of Baho Food gives OSI Europe a more visible presence on the continent, according to David G. McDonald, president and chief operating officer of OSI Group. Baho Food currently prepares the types of foods that OSI has the capacity to process, but Baho Food will help OSI increase its expansion of the products that customers expect to get from OSI.

Baho Food owns five subsidiaries, and these subsidiaries have processing plants located in the Netherlands and Germany. The five companies are Q Smart Life, Bakx Foods, Henri van de Bilt, Vital Convenience and Gelderland Frischwaren, and they provide food products for people in 18 different countries. OSI executives plan to develop a growth strategy using the talents of the managers who are already there, including Managing Director John Balvers and his team.

Mr. Balvers was pleased to begin working with OSI Group. The relationship that OSI Group has with its customers and its suppliers is exceptional, and Baho Food will be in a position to benefit from the vast capabilities and experience of OSI Group. Now that they have merged their efforts, Mr. Balvers believes that both OSI Group and Baho Food will be able to help their customers reach their business goals and have a wide-ranging array of products. This transaction will help them continue to grow as they support each other on their individual paths.

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Flagship Europe

In the winter of 2016, OSI Group made its third purchase. This time, it was the acquisition of Flagship Europe from the Flagship Food Group in Denver, Colorado. Flagship Europe, which was renamed Creative Foods Europe in January 2018, provides the UK foodservice market with pies, sous vide products and frozen poultry, along with condiments, such as mayonnaise, dressings and sauces. Flagship Europe had purchased Calder Foods, the United Kingdom-based supplier of dips, mayonnaise, sauces, marinades and sandwich fillings, earlier in the year.

Chief Executive Russell Maddock of Creative Foods Europe expressed his high hopes for the business at the time of this acquisition. For one, the purchase gave the company access to an increased number of resources owned and operated by OSI. OSI Group also expanded Flagship Europe’s customer base and global markets. As a result, Creative Foods Europe achieved a much greater presence in the marketplace, presenting them with more opportunities to provide their customers with the products that they want and need. Also, President and Chief Operating Officer David McDonald of OSI Group stated that this purchase increased OSI Group’s presence in Europe.

OSI Food Solutions Spain

In the summer of 2017, OSI Group completed its last purchase in Europe by adding a high capacity production line to its existing facility in Toledo, Spain. The new line has increased the current facility’s ability to process chicken products from 12,000 tons a year to 24,000 tons per year.

The expansion meant that OSI Food Solutions Spain can now produce more than 45,000 tons of chicken, pork and beef products in total. It also meant that management needed to add 20 new jobs to the existing workforce of 140 people.

Spain and Portugal are experiencing an increased need for chicken products, and it is growing quickly, according to OSI Food Solutions Spain’s Managing Director Jose Maria del Rio. The demand for chicken products has increased to 6 percent per year in the past 10 years, but that increased even further to 8 percent in the last three years. Mr. del Rio is expecting this demand to continue to rise, and he believes that OSI Food Solutions Spain is ready to meet that demand.

The addition to the existing building is 22,600 square feet, and it contains an employee lounge, hot water tanks, oxygen tanks, oil service areas, refrigeration for storing waste containers, storage for supplies, areas for shipping and receiving and a new production hall. Clients’ and consumers’ changing needs will also be met with the new product development kitchen that has been added to the facility.

David McDonald, president and chief operating officer of OSI Group, stated that OSI Food Solutions Spain’s expansion would give them the opportunity to increase the number of products that the company could offer its customers. They will also be able to grow with their clients as well as their long-term customers. The fact that they are adding new jobs is another positive outcome.

OSI Group was founded in 1909 and is headquartered in Aurora, Illinois. The company’s Chief Executive Officer is Sheldon Lavin, and the Chief Financial Officer is Sherry DeMeulenaere. The company currently employs 20,000 workers and earned $6.1 billion in revenue. It is a holding company for meat processors that provide food for restaurants and other food establishments. Some of the products that OSI Group produces include pizza, hot dogs, vegetables, bacon, poultry, meat patties and fish.

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