German company BayWa AG (DE: BYW) has announced plans to take a majority share in Dutch supplier of exotic fruits and vegetables, TFC Holland B.V., with a purchase price of €28.7 million.
In a release announced today, the Munich-based group said that subject to approval from the anti-trust authorities, it would receive 68.4% in De Lier-based TFC, which has 49 staff and focuses mainly in avocados, mangoes, ginger and citrus.
BayWa described the takeover as an 'important step' in its international growth strategy in agriculture, highlighting TFC had long-standing international trade relations in all procurement markets for exotic fruits, as well as with the European food retail industry.
By expanding its portfolio in the growth market for exotic speciality fruits, in particular in the "ready-to-eat" sector, BayWa said the move strengthened its position as a leading international supplier of exotic and pome fruit.
"The European market for exotic fruits has been on the rise for several years.TFC's product range of appealing specialities is an excellent complement to our existing pome fruit business," said BayWa CEO Klaus Josef Lutz.
"For the European food retail industry we are gaining significance for future cooperation as a result of this majority stake."
BayWa is already one of the largest global pome fruit suppliers, with around 200,000 metric tons (MT) of dessert pone fruit traded in 2014, bolstered by support from its takeover of New Zealand-based T&G Global in 2012.