OSI Group based in Aurora, Illinois has made purchases in 2016 to expand its business. These purchases include Baho Food, a Tyson facility in Chicago, and Fragship Food Group. These additions to the OSI Group will help benefit their business model by providing more production resources and new customers.
Baho Food is one of the major purchases the OSI Group made in 2016. Baho Food is a manufacturer that makes deli meats, and snack foods. David G. McDonald President and chief operating officer of OSI Group stated “Adding Baho Food to our OSI Europe business gives OSI a broader presence in Europe”, meaning a greater market share. Baho Food has five subsidiaries that are located in Germany and the Netherlands. They are Gelderland Frischwaren, Vital Convenience, Henri van de Bilt, Bakx Foods, and Q Smart Life. Baho Food’s current managing director, John Balvers and his staff will remain part of the company. The financial terms for the purchase were not released to the public.
Another purchase OSI Group made was Flagship Europe from Fragship Food Group – based in Denver, Colorado. Fragship Europe is a supplier of frozen poultry, pies, mayonnaise, sauces, and dressings to the United Kingdom. President of OSI Group David McDonard has stated “Adding Flagship to our OSI Europe business gives OSI a broader presence in Europe”, meaning more expansion into the European market. He also states “The company’s portfolio of products and brands complements OSI’s current processing strengths while broadening our capabilities to best serve the evolving needs of our customers”. Translation: this purchase gives us more products to sell and more customers to sell the products to.
Yet another purchase made in 2016 was of a Tyson food processing and storage facility in Chicago. Tyson operated the plant for its prepared foods business. In November of 2015 Tyson announced it would close the plant to improve the company’s efficiency. The former workload of the plant was moved to their other plants. OSI Group has not revealed what type of products would be made at the new facility. Financial details for the purchase were also not released to the public.
See https://www.forbes.com/companies/osi-group/ for more.