Naturally Splendid Enterprises has signed an agreement to purchase certain packaging equipment from Eat Real Snack Food Canada (ERSF).
Naturally Splendid is purchasing the packaging equipment for about CDN$2m ($1.51m).
Under the deal, Naturally Splendid will acquire fully automated standalone zipper bag manufacturing and packaging system, fully automated jar manufacturing system and fully automated jar packaging line.
The company will also acquire fully automated dry food packaging system, automated seasoning packaging system, automated powder packaging system, box making line and overwrapping system.
Naturally Splendid has also entered into a three year service agreement to offer processing and packaging and storage services to ERSF for three years.
Naturally Splendid operations vice president Bryan Carson said: "The acquisition of this packaging line has many potential benefits for the Company. We are able to control inventory and costing much more efficiently, which can translate into increased margins.
“Delivery schedules become more manageable allowing the Company to aggressively pursue additional retail clients.”
ERSF president Ammar Jeet Singh said: This transaction allows ERSF to focus on expanding our international presence. By focusing on international sales, we believe there is an opportunity to drive additional ERSF packaging business to Naturally Splendid.”
ERSF produces a wide range of snack products, while Naturally Splendid produces bioactive ingredients, nutrientdense foods, and related products.
