Australian confectioner and baker Fresh Food Industries (FFI) has entered into an agreement to acquire Prepact, the food processing and packaging operations of Greens Foods, the company told the Australian Stock Exchange on Friday (9 March).

Prepact is a Western Australian business specialising in the processing, packaging and distribution of a range of food for the retail sector.

FFI said that it plans to restructure the business and merge it with Olympic Fine Foods, FFI's dried fruit, nut, snack and muesli business.

Including restructuring and working capital costs, the purchase is expected to require an investment of A$500,000 (US$391,708).

Gross revenue for the new business is expected to exceed $1.5m, while profit margins are expected to significantly improve following the restructuring and cost cutting initiatives. However, the deal is expected to have no material effect on the current year's earnings.