Vion to sell Oerlemans Foods to Baltussen

Dutch food company Vion has entered into an agreement to sell Oerlemans Foods, a manufacturer of fresh frozen vegetables, fruit and potato products, to Baltussen for an undisclosed amount.

The acquisition is expected to strengthen Baltussen, which is involved in the production and processing of fresh vegetables.

The deal is in line with Vion’s revised strategy announced on 15 June 2012 to divest businesses that are not part of the company’s core activities.

The transaction, which is subject to approval of the authorised competition authorities in Poland and the Ukraine, is not expected to affect the employees of Oerlemans Foods.

Oerlemans Foods, based in Venlo, the Netherlands, offers a range of 1,000 products under brands such as Oerlemans, Keizer, Bio+ and Bauer to international foodservice, retail and industrial markets.

The company, which occupies an independent position within Vion, has production facilities in the Netherlands and Poland, with a total workforce of 740.

Baltussen, based in Driel, the Netherlands, processes, supplies and delivers vegetables to retailers in Western Europe, and it also processes and sells organic products under Bio+ brand and private labels.

It is supported by its strategic partner Rijko, which sources the raw materials primarily from growers in Poland.

Meanwhile, Vion has also announced that it will be closing Welsh Country Foods, a lamb processing business that operates a processing facility in North Wales, UK, a move which is expected to affect 350 jobs.

The company noted that it has taken this decision after its key customer, Asda, announced its plans to switch to an alternative supplier.

Vion will begin a 90-day consultation exercise with its unions and workers, and hopes to limit job losses by attracting new customers to the site or divesting the business to interested parties.