Dutch food group Wessanen has taken full control of frozen food maker Favory Convenience Food.
It has bought the 35.9% stake it did not already hold from Rabo Capital for EUR5m (US$6m).
Wessanen is looking to maximise the value of its non-core frozen food businesses ahead of a possible sale. It is increasing its focus on organic products in Europe.
The company said the move would allow greater integration between Favory and Beckers, Wessanen's other frozen food unit.
Wessanen taking full ownership of Favory Convenience Food Group
Wessanen has acquired the minority stake in Favory Convenience Food Group held by Rabo Capital. The partly deferred consideration for this 35.9% minority stake amounts to €5 million.
A strategic review of the Frozen Foods business has led to the conclusion that further alignment and process integration between Favory and Beckers need to take place. Wessanen and Rabo have explored a number of potential routes and ownership structures to achieve this. The outcome of this is that Wessanen takes full ownership of the Frozen Foods entities with a view to execute the strategy and maximise shareholder value. Given Wessanen's focus on organic food in Europe, Frozen Foods is labelled non-core and at some point in time, we expect these activities to be divested.
The Frozen Foods business consists of Beckers Benelux and Favory Convenience Foods Group, owning production locations in Katwijk, Bocholt and Deurne. It produces and markets branded (Beckers, Bicky) and private label frozen snack products in the Benelux and via export. In 2011 it realised revenue of €113 million with about 500 employees.
