OSI Industries has been focusing heavily on domestic and foreign expansion during the past five years. Since Sheldon Lavin joined the company in the 1970s, he has been directing and fueling the initial and continued global expansion of the company. Several of OSI’s recent purchases and acquisitions will boost its reach considerably.
The former Tyson Foods plant in Chicago was purchased by OSI in 2017. With its 200,000 square feet of space, the plant provides more room for OSI to increase production for its North American customers. OSI has an existing facility nearby. According to a spokesperson from the company, the new facility will help meet the fast-growing demand for the company’s products. Although the plant was formerly designed to support the production of poultry products, OSI has the capability to produce many different types of foods at the facility.
Flagship Europe Acquisition
OSI Group acquired Flagship Europe in December 2016 to increase its reach throughout the United Kingdom and other parts of Europe. The UK food plant distributes pies, frozen poultry, dressings and sauces for food service businesses. Recently, Flagship Europe was renamed Creative Foods Europe to better describe the company’s capabilities. Just prior to the OSI acquisition, the company had expanded its own reach with acquisition of Calder Foods, a company that supplies sauces, sandwich fillings, dips and several other products. A spokesperson from Creative Foods Europe said that the acquisition of his company by OSI would improve his firm’s position in the marketplace as well as increase OSI’s reach. Also, the acquisition will make it easier for Creative Foods Europe to serve its customers. Executives at OSI Group were especially pleased with this acquisition since it would certainly bring the company’s presence into new territories in Europe while improving services in existing markets.
One of the OSI plants is in Toledo, Spain. The company invested in a high-capacity production line for this OSI Food Solutions plant to boost its poultry output, which is the location’s main product category. Its prior output capacity was about 12,000 tons of poultry products each year, and the new addition allows it to produce 24,000 tons annually. The improvement boosts OSI’s total annual output from the Toledo plant to 45,000 tons of beef, pork and chicken products.
In addition to featuring a high-capacity production line, the latest improvement to the OSI Food Solutions plant in Toledo includes improved facilities for receiving, refrigeration and several other operations. The plant has an improved fire safety system. Also, its innovative energy design has cut electricity use considerably. One of the new additions is a heat recycling system, which uses the heat produced by machines to warm the water the plant uses for its cleaning process every night. In addition to lessening its environmental impact, OSI added 20 new jobs with the Toledo plant improvement. One of the positions is for a product development manager, who is responsible for improving products and testing new ideas. The facility also boasts a new dedicated kitchen for testing products.
Baho Food Acquisition
Baho Food manufactures deli meats and several snack foods. It markets to the food service industry in the Netherlands and Germany. OSI Group acquired the company to expand its reach into the Netherlands. Also, the acquisition will position OSI to expand its reach throughout other parts of Europe since Baho serves companies in several countries. A spokesperson from OSI said that Baho’s product portfolio strengthens OSI’s current line of products to improve its ability to serve the evolving needs of customers.
Baho boasts five of its own subsidiaries throughout the Netherlands and Germany, and it has a presence in 18 European countries. Many of Baho’s executives will remain in their current positions to work with OSI’s executives on growth strategies. In an interview, the executives of Baho said that they were excited to become part of the global food production company. They said that the capabilities of OSI and its expansive portfolio will strengthen their own company and will accelerate growth throughout Europe.
About OSI Group
OSI began as Otto & Sons, starting in 1909 as a small butcher and meat shop in the suburbs of Chicago. In 1955, the company gained distinction because it was chosen as the official supplier of ground beef for the first McDonald’s restaurant opened by Ray Kroc. While it was still operating under the name of Otto & Sons, the business opened a plant in 1973 in West Chicago that was dedicated to producing beef for McDonald’s. In 1975, the company’s name was changed to OSI Industries. As the 1970s came to a close, the company expanded into Utah and then into Germany, continuing to service the McDonald’s business.
During the 1980s, OSI expanded into Brazil, Spain, Taiwan and Austria. Additionally, a new facility opened in Chicago. Throughout the 1990s, OSI gained a presence in the Philippines, Mexico and several other European countries. Today, OSI Group has in excess of 65 facilities in 17 countries. In addition to beef, pork, poultry, fish, dough and vegetable products, the company also makes snack foods and condiments. It employs about 20,000 people worldwide. Over the years, OSI has won multiple awards for maintaining health and safety standards. It is headquartered in Aurora, Illinois.