Dutch food company Wessanen has agreed to acquire Italian organic drinks firm Abafoods for €52m.
An agreement to this effect was signed between both the companies.
Abafoods currently operates an advanced manufacturing plant in Badia Polesine and owns and manages around 400 hectares of organic farm land, where it partly grows its raw materials.
It produces a range of cereal drinks that are made using rice, coconut, almond, oat, spelt and soy.
Abafoods has generated €27m in net revenues for the year 2013, while its revenue and EBITDA are expected to increase substantially to around €39m and €6m, respectively for 2014.
Commenting on the acquisition, Wessanen CEO Christophe Barnouin said: "The acquisition of Abafoods is a major step in the execution of our strategy. Abafoods unique expertise in dairy alternatives will strengthen our R&D and production capabilities to fuel the growth of our brands in Europe, as well as Isola Bio, in this core category.
"It also gives us critical mass in Italy - a large and growing organic market in Europe - with a leading brand position thanks to Isola Bio.
"Finally, it reinforces our commitment to organic: Abafoods, like Wessanen, are two companies, where we commit to organic food and sustainable farming."
Currently, Abafoods also produces a significant part of non-soy cereal drinks for Wessanen's Bjorg and Bonneterre brands.
