German food and beverage giant Oetker Gruppe has agreed to buy Belgium-based bakery supplier Diversi Foods for an undisclosed sum.

Oetker said the deal, struck with Diversi shareholders including the company’s founding family and buy-out house Waterland Private Equity, is subject to competition approval but is expected to be finalised in 2018.

The transaction is to give Oetker ownership of a business that supplies frozen baked goods to retailers and foodservice operators. Diversi has production sites in Belgium, the Netherlands, the UK and Poland. The company, which employs more than 1,000 staff, generates an annual turnover of over EUR150m (US$176.8m), Oetker said.

Diversi is to join Oetker’s baking arm Martin Braun-Gruppe, a division that turns over EUR350m in sales.

“With the acquisition of Diversi Foods, we are expanding the product range and supply chain services offered by the Martin Braun group,” Oetker’s Dr. Albert Christmann said. “At the same time we are making a clear statement that the Oetker group continues to focus on growth.”