Royal Wessanen and Rabo Capital have completed the merger of their frozen snacks businesses, following consultation with employee representatives.
The deal, announced in April, sees the formation of a jointly owned company called Favory Convenience Food Group. The entity will comprise Rabo Capital's Habek Snacks operation and Wessanen's frozen snacks operations, producing ragout rolls, hamburgers, meat rolls and halal snacks.
Wessanen will own 60.6% of the new company, with Rabo Capital owning the remaining 39.4%. Wessanen added that the transaction was cash neutral for the Dutch food group.
As part of the transaction, Favory Convenience Food Group has acquired the Wessanen private-label frozen snack business and its facilities in Bocholt in Belgium and Tilburg in the Netherlands. Favory will also take over the Habek Snacks facility in Deurne in the Netherlands.
When the deal was first announced, Wessanen said it would allow the company to sharpen its focus on its branded food businesses. "Wessanen is benefiting from the synergies that consolidated production in this mature market will deliver," general manager Henk Spoon said at the time. "Simultaneously it allows Wessanen to focus on its declared strategy of building brands like Beckers."