Fresh Produce Business
Proposed deal could create world’s largest fresh produce company and adds development to recent rumours of a possible sale
The directors of Belgium-based fruit and vegetable giant Univeg have revealed they are to discuss a potential merger with processing firm Greenyard Foods and horticultural substrate specialist Peatinvest, a move that would create the world’s largest fresh produce company.
Greenyard Foods, which changed its name in September 2013 from PinguinLutosa after the sale of its Lutosa potato business to McCains, is currently listed on the Euronext stock exchange, so the move will add further fuel to rumours circulating last month that plans are afoot to take Univeg public.
In February, Belgian newspaper De Standaard claimed that Univeg’s chairman and majority shareholder Hein Deprez wanted to sell the company in an initial public offering during the second half of 2015.
In a statement, the company’s board said it believed a “business combination” of the three groups had the potential to create “a unique global player in the fruit and vegetables market capable of offering the full range of fresh, frozen and canned products”.
Combining Univeg with Greenyard Foods and Peatinvest would in theory create a global market leader in the fruit and vegetable business, with combined revenue in excess of €3.7bn eclipsing the sales of even the largest multinationals currently operating in the business.
Hein Deprez, chairman of Univeg, is also chairman of Greenyard Foods and Peatinvest – both of which have their headquarters in Belgium.
At Greenyard, via Deprez Holding, Food Invest International and 2D, he is also the controlling shareholder of the company, with around 46 per cent ownership. He is also the major shareholder in Peatinvest.
Commenting on the proposed merger, Deprez commented: “Creating a combined group offering fresh, frozen and canned fruit and vegetables would be beneficial to growers, retailers, consumer, employees and shareholders. We believe societal trends call for a more holistic view on fruit and vegetable consumption.”
Univeg’s statement added that discussions were still due to take place regarding the value and specific detail of any such deal. No decision will be made until an agreement has been reached!
“No final decision has been reached regarding the structure of any business combination,” the group added. “In the meantime, there can be no certainty on any agreement between Univeg, Greenyard Foods or Peatinvest, or as to the terms of any such agreement.”
Soft fruit specialist scoops four prizes, while a range of other well-known fresh produce businesses landed gongs
Numerous well-known businesses in the fresh produce industry scooped prizes at Wednesday’s (25 February)’s Grower of the Year awards.
Berry Gardens was the big winner on the night, scooping four prizes (best agronomist, Jon Marcar; best new variety in top/soft fruit, Driscoll’s Solero strawberries; soft fruit grower of the year, Littywood Farm; top fruit grower of the year, Lower Hope Farms), while Vitacress (best environmental initiative, peat free cress), Huntapac Produce (vegetable grower of the year) and Southern Salads (salad grower of the year, LJ Betts) also scooped prizes.
Other winners included AC Goatham & Son’s Peter Bukowski as best production manager, Redarling Red Sprouts – proposed by Syngenta on behalf of Staples Vegetables – as best new variety for vegetables/salad, The Little Big Voice for best consumer marketing campaign (for its ‘Love Your Greens’ scheme run on behalf of the Brassica Growers’ Association), Corkers Crisps as potato grower of the year, and tomato grower Robert Farthing as young grower of the year.
Nicholas Marston, Berry Gardens MD, said: “It is great to see so many of our growers and staff recognised by the judging panel for their dedication and passion to the UK fruit industry.”
Lower Hope Farms won the top fruit grower gong for its cherry concept orchard.
Simon Wells, MD of this business, said: “This award is due to the commitment and hard work of the team at Lower Hope Farms, and we will continue to push the boundaries of growing British cherries.”
Andy Mellonie, Marks and Spencer senior agronomist, added: “Lower Hope Farms’ new concept orchard is a glimpse into the future of how all modern British cherry orchards will be managed in the future.
“It is a credit to the hard work and innovative approach of Clive, Andy, Simon and their team to see a series of trails on this scale. It’s extremely impressive to see just how quickly first production has been achievable.”
On Vitacress winning its award for boasting the best environmental initiative, Tony Reid, head of marketing at Vitacress, said: “Growing quality produce to high environmental standards is at the heart of what we do, and we are delighted to be recognised with this award.
“The new wood pulp substrate is a result of extensive trials, as the key for us was to find a medium that would easily transfer into cress punnets. This new method is very efficient and we are able to maintain our production levels while also minimising waste.”