UK-based global frozen and chilled food exporter Lamex Food Group has signed a deal to acquire Serbian frozen fruit and vegetable processor Mondi Serbia.

Global importer and exporter Lamex said adding red fruits from Mondi Serbia’s business to its own is the first step in a chain of “carefully planned investments” designed to protect the supply chain of its higher profile customers that procure high quality frozen fruit.

“The Mondi Serbia business has hit difficult times with the continual increase in the cost of raw material and a lack of available finance, but we have been a customer for many years and believe it to be one of the best processing plants in Serbia with a great team of people,” said Lamex CEO Phil Wallace.

“Our financial strength will bring new confidence to the present position and, hopefully, give existing creditors the confidence they need to approve the proposals.”

Once complete, Lamex Agrifoods, a subsidiary of Lamex Food Group, will handle the global sales for the new business, which will be renamed Mondi Lamex.

Lamex said it intends to increase production at Mondi’s facility in Kraljevo and work with the firm on a number of of new developments and markets around the world, including organic products, under the new Mondi Lamex corporate identity.

Financial terms of the deal were not disclosed. The transaction is subject to various closing conditions and is expected to close in May.