US mushroom producer Sylvan has announced that it has entered into a definitive agreement with Snyder Associated Companies that will result in a merger between Sylvan and a Snyder affiliate.

The value of the transaction, including the assumption of debt, is estimated to exceed US$95m.

Kittanning, Pennsylvania-based Snyder is a privately held company involved in the production of oil, natural gas, mineral aggregates and fresh mushrooms.

Sylvan, with 2002 revenues of $88.2m, is involved in fungal technology and is a worldwide producer and distributor of products for the mushroom industry. It specialises in spawn (the equivalent of seed for mushrooms) and is a major grower of fresh mushrooms in the United States.

The merger is subject to certain conditions including the approval by a majority of the shareholders of Sylvan and approval from certain regulatory authorities.