Sint-Katelijne-Waver, Belgium-headquartered Greenyard Foods, Europe’s second largest producer of frozen vegetables and a supplier of frozen fruits and ready meals, canned and fresh vegetables and fruits, on January 5 announced an agreement to acquire all outstanding shares of Lutèce Holding BV.
Lutèce is a major packer of canned mushrooms and a wholly owned subsidiary of the cooperative CNC (Coöperatieve Nederlandse Champignonkwekersvereniging). The Dutch company operates two modern production facilities at Velden and Horst in southern Holland, has 190 employees, and rang up sales of approximately €100 million in 2015.
Adding Lutèce to the Greenyard Foods portfolio – which includes Pinguin Foods, Noliko, UNIVEG and Peltracom – is expected to result in significant synergies and have an immediate positive impact on the group’s EBITDA, according to a press statement issued by the company. The acquisition is being financed from existing credit facilities.
The transaction, which is subject to the approval of the members of CNC UA, as well as meet all necessary regulatory requirements and approvals and other customary conditions, is expected to be completed before May of 2016.
“The addition of Lutèce is an ideal complement to our existing operations, allowing us to further strengthen our leadership position in the canning business by expanding into preserved mushrooms, an adjacent and attractive market for us,” said Marleen Vaesen, chief executive officer of Greenyard Foods. “One of the cornerstones of our success over the years has been working closely and successfully with growers to constantly improve and adapt to meet the needs of customers and consumers.”
Cor Beerepoot, chairman of the board of CNC, commented: “We are pleased to have reached this agreement with Greenyard Foods. I am confident that Lutèce and its employees and stakeholders have found an excellent strategic partner that is well suited to lead the company in its next phase of development. This transaction will allow CNC to focus on the further expansion of, and investment in, our substrates business.”
