Greenery UK has acquired all the shares in John Baarda after the tomato specialist approached it for financial assistance for the third time in less than two years.
Baarda, which is the second largest tomato grower in the UK, has struggled in recent years with poor financial performance and operational challenges.
The board of directors, which includes both Greenery UK and an outside director who served as chairman, accepted financing terms presented by Greenery UK after it became clear doing so was in the best interest of John Baarda, the employees and creditors, according to the company. There was no alternative brought forward to the board, and Greenery UK was left to consider its options, it added.
“The domestic supply of tomatoes is obviously what is important to our retail partners, the British customers and consequently our business,” said Kevin Doran, MD of Greenery UK. “Across Europe we are involved in ‘local for local’ partnerships with domestic producers. This is consistent with that posture, so with the support of producer partners we stepped in with the required financing.”
The move means Greenery UK has become the sole shareholder in John Baarda, which is the second largest tomato producer in the UK, after the transaction completed on January 19. It has also resulted in the resignation of directors including chairman Andrew Lesser, company finance director Adrian Burrows and MD David Baarda. “David Baarda wants to consider other opportunities he can now pursue, so I certainly understand his decision,” said Doran, who added Baarda would stay on as a consultant for a period of transition and handover.
“Given the very difficult circumstances, this is certainly the right way forward for the company,” David Baarda explained. “The Greenery has the resources and expertise to realise the full vision we had for Billingham. There is room to grow up there, which was one of the reasons we chose that site.”
A new board has been named and has taken over operations, with Nigel Bartle, the current general manager of Cornerways Nursery in Wissington, named equity partner and MD. He takes over from March 1. “He was a natural [choice] and certainly Nigel Bartle requires no introduction from me”, said Doran. “It goes without saying we are thrilled with this announcement.”
Bartle has been managing British Sugar’s horticultural business, Cornerways Nursery, since 2001 and is also chairman of the British Tomato Growers Association. “It is a very exciting opportunity for me”, Bartle said “and, as I am from that part of the country, it also just felt like a natural fit.”
Colm McKay, agriculture director of British Sugar, added: ”We are pleased that Nigel has an opportunity to pursue a dream he has had since a young age. I would like to thank him for his superb contribution and support over the past 10 years in establishing Cornerways Nursery as an award-winning horticulture business, and I wish him all the best for the future.”
Paul Simmonds, who has been integral in the successful operation of Cornerways Nursery, has been appointed as general manager with effect from 1 March. “We are delighted to appoint Paul as general manager of Cornerways Nursery, with over seven years of experience within the tomato industry and the NFU’s Young Grower of the Year in 2010, this is the next step in his successful career at Cornerways”, said McKay.
Both Cornerways Nursery and John Baarda are members in the grower group and producer organisation Coforta UA, the single shareholder of The Greenery BV. A new board of directors and advisory board has also been named and will be made up of Theo van Noord, who is a key producer in the Netherlands and sits on Coforta’s Grower Member Council, Nigel Bartle and Kevin Doran, who will serve as chairman.
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