South African conglomerate Bidvest intends to expand its business in Eastern Europe through the acquisition of Nowaco in the Czech Republic and Farutex in Poland.

The businesses, collectively known as the Nowaco Group, are being purchased from Bancroft Private Equity and funds affiliated with JPMorgan Partners and managed by CCMP Capital Advisors.

The total enterprise value is EUR250m (US$360.3m) and the management of each business have committed to acquiring between 5% and 10% of the companies after the completion of the deal.

Nowaco Group is the largest delivered wholesaler to foodservice and independent retail markets in central and Eastern Europe.

The company also owns two brands, Nowaco and Prima, which have category leadership in frozen food and ice cream. Newaco supplies these products to the international retail and hypermarket sectors in the Czech Republic and Slovakia.

Bidvest said today (3 August) that the acquisition will complement its existing international foodservice businesses in the UK, Europe, Australia, New Zealand and Asia.

Central and Eastern Europe represents a "strategic market" with growth opportunities, Bidvest added.

"The acquisition represents a compelling investment proposition," the company said.