Utrecht, April 13, 2007 - Wessanen and Rabo Capital merge frozen snack business Royal Wessanen nv and Rabo Capital have come to an agreement with the intention to set up a New Company that merges the activities of Habek Snacks and Wessanen in ragout rolls ('kroketten'), hamburgers, meat rolls ('frikandellen') and halal snacks.
The jointly owned New Company will acquire the related Wessanen private label frozen snack business and the facilities in Bocholt (B) and Tilburg (NL) as well as the business and the facility of Habek Snacks in Deurne (NL).
Currently both companies produce frozen snacks for own brands and private label. The Beckers brand stays within Wessanen and will be supplied by the New Company. Derek de Broekert, Director Rabo Capital; “Entering into a partnership with a strategic player perfectly fits the philosophy of Rabo Capital. In addition this transaction underlines our longstanding relationship with Royal Wessanen and Rabobank’s strong commitment to the Food & Agri industry.”
Wessanen will own 60.6% of the shares in the New Company and Rabo Capital will own 39.4%. The transaction is cash neutral for Wessanen. Henk Spoon, General Manager of Wessanen Netherland BV says: “We are very pleased with Rabo Capital as our partner in this New Company. Wessanen is benefiting from the synergies that consolidated production in this mature market will deliver. Simultaneously it allows Wessanen to focus on its declared strategy of building brands like Beckers.”
The initiative is taken to strengthen the competitive position and to deliver synergies in a further consolidating market. As a consequence of this intended merger and the resulting consolidation of production activities, it is planned to transfer all production activities from Tilburg to the production facility of Habek Snacks in Deurne.
Wessanen and Habek Snacks are undertaking the appropriate communication and consultation with relevant employee representatives. Following the successful completion of this process, a final agreement will be executed. The completion of the transaction will then be conditional on Competition Authorities’ approval.