Hortifrut and VitalBerry announce merger agreement
Chilean companies Hortifrut and VitalBerry have sought to capture synergies and economies of scale with a merger agreement that was agreed on today.
Hortifrut would be the continuing company under the deal with VitalBerry shareholders receiving a 25% ownership in it.
The move, which is hoped will enhance Hortifrut's strategic plans, must be approved at a special meeting of shareholders from both companies that will take place soon.
It is estimated that the company will reach sales of more than US$300 million by the end of this year.
The two companies will have 1,900 hectares of land on different continents, with a combined 50 years of experience between them; Hortifrut with 30 years and VitalBerry with more than 20 years.
"This is great news for all of us in the berry industry, from the grower to the end customer," said Hortifrut president Víctor Moller.
"This operation is a response to an international market that demands suppliers with high capacity and efficiency to meet their increasingly demanding requirements."
VitalBerry president Andrés Solari added the combined company would be able to find new and better growth opportunities, while also adding value for producers.