Bonduelle and Allens have reached an agreement that will see the French firm take control of the majority of Allens’ frozen vegetable operations.
In what the group’s described as a “win-win” deal, Bonduelle will buy four of Allens’ six vegetable processing plants. Three are located in New York state – in Bergen, Oakfield, Brockport – while the fourth is based in Fairwater in Wisconsin. The acquisition will secure the jobs of around 400 permanent employees, Bonduelle said.
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The French vegetable group will also acquire a number of Allens brands, including Chill Ripe and Garden Classics. In addition, Bonduelle will be granted a license to use certain brand names owned by Allens for a transitional period of 18 months, the companies said on Friday (9 March).
The transaction is expected to close later this month and remains subject to regulatory approval. Financial details were not disclosed.
Bonduelle’s North American unit produces more than 335,000 tons of vegetables grown in Quebec and Ontario. Approximately 30% of this is exported to the US, mainly as frozen produce. Bonduelle said that the acquisition will drive sales in the US and reduce the risks associated with currency exchange and climate.
“With this acquisition, the Bonduelle Group becomes one of the main players in prepared vegetables in North America and pursues its growth outside of the European Union,” the company said.
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By GlobalDataFor its part, Allens said the disposal will allow it to focus on its core businesses of canned and Southern-style frozen products.
The US food maker emphasised the sale comes as it is investing in its core business. It has recently invested in three additional canned and Southern-style manufacturing facilities in Arkansas, Wisconsin and North Carolina, as well as technology, equipment and resources to bring products to market faster and meet year-round demand.
The company will retain ownership of its two facilities in Montezuma in Georgia. The sites specialise in frozen breaded vegetable products and Southern-style frozen vegetables, Allens added.
“We’re excited to put a renewed focus on the core of our business and the market segments we are most passionate about,” said Rick Allen, president and CEO of Allens. “With this renewed concentration, we anticipate greater growth, more innovation and even better customer service and product quality.”
