Netherlands-based fruit and vegetable ingredients specialist SVZ has plans to purchase Mondi Foods, a European supplier of red fruit ingredients, for an undisclosed amount, while simultaneously ending the production at its plant in Etten-Leur, the Netherlands.
The company's intended acquisition of Mondi Foods from SONO International is a part of its plan to fortify its position in the market of fruit and vegetables purees, concentrates and colours.
The transaction is expected to be concluded before this summer, and is subject to advice by the works council and approval from the German competition authorities.
Mondi Foods, headquartered in Rijkevorsel, Belgium, supplies red fruit ingredients to the food industry, with production locations in Rijkevorsel and Karczmiska, Poland.
The Belgium company also operates a sales office in the UK, and employs a staff of about 120 people.
The divestment of Mondi Foods' activities is believed to help Sono's in its strategy to concentrate on tropical juices.
On the other hand, the Dutch company plans to close its production plant in Etten-Leur by mid 2013.
As a result of the site closure, the company will transfer production capacity to its production centres in Poland and Spain, however, its headquarters will remain in Etten-Leur.
SVZ said that both the acquisition and the production site closure fit in its plan to be the partner of choice for world class food companies to cater to shifting consumer demands, while affecting nearly 70 jobs.
The closure of the company's Etten-Leur facility is associated directly to dynamic market conditions.
According to SVZ, the changing demands of consumers to more healthy, more nutritious food, which is produced in safe and sustainable circumstances affect food companies, along with the growers who produce fruit and vegetables.
The Netherlands-based company, which acts as a critical link between food companies and growers, said that it plans to raise its focus on the relations with growers and at the same time drop unneeded costs in the supply chain, in order to help food companies meet consumer demands.
