Swiss meat processor Bell Food has acquired Dr A Stoffel Holding, one of the major stakeholders in the Hügli food group.

Stoffel owns a 50.2% stake, as well as 65% voting shares in Hügli.

Established in 1935, Hügli is a Swiss company that produces food products such as soups, sauces, bouillons, desserts, functional food and delicatessen specialities.

It operates ten production plants in Switzerland, Germany, Italy, Spain, the Netherlands, the Czech Republic, and the UK.

The deal is expected to close in May after receiving approval from European competition authorities.

Bell Food is also planning to launch a public tender offer for the remaining shares of Hügli at a price of Sfr915 ($948) per share.

“The acquisition of Hügli marks an important milestone in our growth strategy in the convenience sector.”

For this acquisition, Bell Food is planning to raise Sfr600m ($622m) through a combination of equity and debt capital.

The raised funds will also be invested in Hügli’s Swiss production facilities in order to further strengthen its position in the convenience market.

Bell Food board of directors chairman Hansueli Loosli said: “As well as strengthening our traditional areas of business, the acquisition of Hügli marks an important milestone in our growth strategy in the convenience sector.

“We are proud that Hügli’s founding family has chosen us as the new owner. We believe this combination has great potential to benefit our customers, employees, and shareholders.”

Bell Food anticipates that the acquisition would strengthen its presence in local as well as European foodservice markets.