Scandinavian fresh produce company STC GreenFood has announced it is to merge with Swedish fresh, prepared foods specialist Norlico, in which its holding company, Swedish investment group STC Interfinans, already owns a 65 per cent shareholding.
By acquiring the remaining 35 per cent stake in Norlico from LOTS Invest, STC Interfinans said STC GreenFood would be able to strengthen its position in the European fresh-cut sector by establishing a dedicated fresh-cut produce division.
The merger means the group will now boast the largest production capacity within the Scandinavian fresh-cut segment, with processing operations at leading Swedish importer-wholesaler Ewerman expected to form part of the new consolidated business.
Gothenberg-based Norlico's companies deliver vegetables and fruit to a number of major customers, including all of McDonald's' restaurants in the Nordic region.
'This is an important structural deal, which strengthens our positions in the fast-growing products segement in the Nordic region,' commented Lars Sköld, president and CEO of STC Interfinans.
The new fresh-cut products division will be led by Björn Johansson, previously a partner in Norlico. 'He has long experience of working with modern, innovative meal solutions and his experience will be an important asset in the future work,' Mr Sköld added.
Mr Johansson also welcomed the deal: 'The merger makes us stronger and also broadens the interface to customers and the market.'
STC GreenFood was formed in 2009, bringing together operations at Swedish fresh produce companies Ewerman and Allfrukt, Finnish importer Satotukku Oy and its Spanish sourcing subsidiary STC Ibérica to create a stronger and more comprehensive commercial base for customers.
Following the merger, it is anticipated that its Norlico's subsidiaries Salico, Salico Oy and öllövGrönt will also form part of the new fresh-cut business.
Norlico Holdings' subsidiary Osterlén i Malmo, which specialises in processed meats and cheeses, will not be integrated into STC GreenFood, but will operate within the STC Interfinans group, the company confirmed.
'STC GreenFood has already created a number of interesting business opportunities for Ewerman, mainly through greater cooperation with Allfrukt ad STC Ibérica,' said Per Unger, chief executive of Ewerman. 'The merger gives us more opportunities to go on the offensive – now with our sights on fresh-cut products.'
With interest in fresh-cut fruit and vegetable products reported to be growing steadily, changes in packaging technology and distribution are creating such opportunities to add value, a trend which explained STC GreenFood's decision to expand its offering, said Mr Sköld.
'Fresh-cut products are fresh and easy to use, making them increasingly popular,' he said. 'Todsay, the consumption of such products is relatively low in the Nordic countries compared with many other countries in Europe, but we see that the interest is steadily increasing.'
He added: 'This also explains why 'cut, washed and packaged products' is a segment where we want to grow.'
Following the acquisition, STC GreenFood will have a total of 400 employees in eight different locations, but its member companies will continue to operate under their own brands.
Under Björn Johansson's leadership, Ewerman's processing activities are expected to be merged with other similar operations belonging to STC GreenFood during the autumn.
