Flemish fruit and veg companies sign agreement to merge

Word of a possible merger first emerged last month. Greenyard is a major player in the frozen vegetables and preserves market, employing 2,200 at 13 production facilities in Belgium, France, the UK, Poland and Hungary and sales offices on five continents. Univeg delivers fresh fruit and vegetables, employing 4,000 people in 27 countries worldwide. Peatinvest delivers substrate and potting compost to growers.

Univeg, based in Sint-Katelijne-Waver, Antwerp province, and Ghent-based Peatinvest would be entirely taken up by Greenyard Foods, a stock market quoted company, with the shareholders of the two companies being issued 25.5 million Greenyard shares.

At the same time, the investment fund Gimv-XL will exercise its warrants, which amounts to a capital injection of €25.6 million, after which the shares of the combined company will be held 42.5% by existing Greenyard shareholders, 49.6% by existing Univeg shareholders and 7.9% by existing Peatinvest shareholders.

Hein Deprez, chair and main shareholder of all three companies, remains, together with his sister Veerle Deprez, the reference shareholder of the merged group. The merger has to be approved by the three boards and by EU competition authorities. Greenyard shares went up 8.5% on the announcement to €18.35.

“The creation of a combined group of fresh fruit and vegetables on one side and processed fruit and vegetables in cans, preserves and deep-freeze on the other is a good thing for growers, retailers, consumers, workers and shareholders,” Hein Deprez said.
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