OSI Group Continues International Expansion with Recent Acquisitions

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OSI Group Continues International Expansion
OSI Group Continues global expansion with new facilities in Spain and Europe

As a world leader in the food business, OSI Group, LLC is interested in the acquisition of other food companies that are involved in the production of quality products. Operations around the world that can adhere to the OSI’s exceptional standards are positive additions to the Group’s portfolio, and enable the company to maintain the highest levels of quality and efficiency. From its headquarters in Aurora, Illinois, OSI Group maintains a leadership position in the production of value-added, protein-rich items for food service outlets as well as well-known retail brands.

Expansion in Chicago 

With the purchase of a former Tyson Foods plant in 2016, OSI added a 200,000-square foot building in a convenient location near to an existing facility. The company took this step to increase its ability to serve the growing demands of its customers. A spokesman for OSI North America, Senior Executive Vice President Kevin Scott, expressed the company’s excitement about the addition of the former Tyson plant to OSI’s manufacturing network.

An agriculture resource at WATTAgNet, the Top Poultry Companies Database, lists the company as a privately held corporation with over 60 locations in 17 countries, although the majority of its poultry production occurs in its China facilities. Neither Tyson Foods nor OSI Industries disclosed the terms of the Chicago location’s sale, but both companies acknowledge making the deal to achieve efficiencies in their operations.

A Tyson Foods spokesperson confirmed that the company’s plans to discontinue operations at the Chicago plant supported its efforts to improve business functionality. The streamlining process also eliminated another plant in Jefferson, Wisconsin. By transferring the workload from the two closed plants to other locations that had the ability to absorb increased production, the company achieved a goal of becoming more efficient.

Enhancing the European Operation

The acquisition of Flagship Europe (which was recently renamed Creative Foods Europe) from the Colorado-based Flagship Food Group, expanded the presence of OSI in the European market for a variety of food solutions. Creative Foods Europe produces a line of sauces, dressings and pies to serve the foodservice market in the United Kingdom. Prior to the acquisition by OSI, Creative Foods Europe had expanded its own base by acquiring Calder Foods, a UK-based company whose line of condiments, dips and fillings complemented the new owner’s product line.

Creative’s president, Russell Maddock, said that joining OSI was an “exciting and progressive development for us.” It gives us increased resources as well as “access to new clients and global markets,” he said. Mr. Maddock saw the opportunity to “strengthen our position in the marketplace” and to better serve customers while enhancing our “already successful business.” OSI Group’s president and COO, David McDonald, expressed satisfaction with adding this enterprise to his company’s European business. It gives us a “broader presence in Europe,” he said as he touted the “products and brands” that enhance OSI’s ability to serve the needs of its customers.

Increasing Capacity in Spain and the Philippines

With innovation and acquisitions, OSI Group expanded its capacity to produce beef, chicken and pork products at OSI Food Solutions Spain and at GenOSI in the Philippines. With the addition of a “high-capacity production line,” the Toledo, Spain facility has an output capacity of more than 45,000 pounds. The expansion of the Philippines operation allowed the new 7,500-square-meter space for meat processing to enhance the productivity of the GenOSI food items. OSI joined with venture partner Fred Uytengsu with cooperation from GADC to increase the capacity for production of the quality food items that GenOSI makes for restaurants and food establishments.

Acquiring Access to the Dutch Market

A manufacturer of deli meats, snacks and convenience foods, Dutch company Baho Food attracted the attention of OSI Group with its quality product line and its presence in Europe. Five Baho subsidiaries have processing facilities in Germany and the Netherlands that reach 18 European countries. McDonald expressed satisfaction with the “portfolio of products” that Baho brings to OSI Group to complement its processing strengths and increase its capacity to serve customers.

With the intent of maintaining consistency during the transition, the two companies welcome the decision of Baho Food’s managing director, John Balvers, to remain as a vital part of the business. He brings his management team along as well as part of a plan to work in tandem with OSI executives for a combined growth plan. Balvers stated his excitement about joining OSI Group and enjoying access to existing suppliers and customers. He acknowledged that the two companies’ “combined strengths” lead to a “broader product portfolio.” The companies did not release the terms of the deal.

READ: OSI Group acquires Baho Food

Expanding from Local Meat Market to World Leader

Within a few years after arriving in the United States from Germany, Otto Kolschowsky started to realize the American dream of entrepreneurship. His family meat market opened in the suburbs of Chicago, Illinois in 1909, and he soon grew it into a wholesale meat business. As his success increased, he moved his company and changed its name to Otto & Sons in 1928. His standards for providing quality, value meats for several decades led to McDonald’s decision to make his company its first supplier of ground beef in 1955, according to the company’s timeline.

Now in a new century, Otto & Sons has become OSI Industries and part of OSI Group, a world leader in the food processing business. The Aurora, Illinois-based company provides an extensive line of food products and value-added protein items for retail brands as well as foodservice establishments. The product line features items for breakfast and lunch with its entrees, side dishes, snacks and condiments. Bloomberg cites the company’s products as fresh, frozen or cooked beef patties, raw or processed chicken items, cooked pork and beef selections, bacon, breakfast sausage and hot dogs. Kettle and smoked offerings complete the company’s current line of food products.

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