Ericherrmann

OSI Food Solutions Continues to Grow

OSI Food Solutions is one the largest players in the global food market. It started as a meat processor, and has since branched out from its roots to become a producer of many other kinds of food products. After operating domestically since 1909, OSI is now a global supplier of food, with a strong presence in the European market. It achieved success as one of McDonald’s largest beef suppliers, and has since expanded to become one of the most important food processors in the United States. Recently, OSI Food Solutions has made several key purchases to broaden its business lines. In 2016, OSI Food Solutions purchased the Tyson Food plant in Chicago for $7.4 million. The Tyson Food plant was a longtime institution in the South Side of Chicago, and it employed almost 500 people when it previously operated.

OSI Food Solutions was able to save the jobs of approximately 250 of its workers. For OSI, the location and the size of the plant fit within its overall manufacturing plans for the area, since it is located in proximity to other OSI facilities in the Chicago region. The facility has enabled OSI to further diversity its product lines. That same year, OSI Food Solutions also purchased a controlling share of Baho Food, in furtherance of its expansion into Europe. Baho manufactures snack and deli foods and is also a meat processor and sells to both the retail and food services industries.

Baho has a long history of producing meat-based foods, along with drinks and snacks. Baho has a manufacturing presence in Germany and the Netherlands through its five operating subsidiaries, which include Henri van de Bilt and Vital Convenience. For Baho, the deal makes sense because it can leverage OSI Food Solutions’ existing relationships with both its suppliers and customers. For OSI, its acquisition of the Baho stake gives it a larger presence in Europe and enables it to broaden its product line. OSI has retained Baho’s staff and management in place, while integrating the business into OSI’s platform. Baho Food is now an integral part of OSI Europe.

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