Meat packing business Hilton Food Group has agreed a deal to acquire a 50% stake in vegetarian product manufacturer Dalco Food for an undisclosed sum.

Netherlands-based Dalco produces a range of meat alternative products, and Hilton claims that this deal will allow the company to significantly expand its product offering in the vegetarian market.

The deal will allow Hilton will provide its manufacturing expertise and network to further expand Dalco’s product range, servicing both Dalco’s existing customers and Hilton’s customer base.

The agreement is subject to approval from the Dutch competition authority, and also includes an option for Hilton to acquire the remaining 50% of Dalco’s shares in 2024.

Hilton CEO Philip Heffer said: “This agreement represents an exciting opportunity for Hilton to broaden its offering in a growing segment of the market and meet our customers’ demands for Hilton to supply them with a range of innovative, high-quality vegetarian products.

“We look forward to seeing the positive effects of our tried and tested business model on this relationship, which will be supported by our flexible and versatile approach to meeting local requirements.”

Dalco CEO Marian Wagemakers added: “We are pleased to have signed this joint venture agreement with Hilton and look forward to the benefits and expertise that this brings to our business and that we can bring to Hilton’s business.

“It will enable us to expand our operations and continue to focus on giving our customers the right choices at competitive prices.

“I value the mutual respect and cultural similarities which will provide a strong base for a successful joint venture.”