Lamex Food Group, Bloomington, Minn., entered into an agreement to acquire a significant holding in Mondi Serbia, a processor of frozen fruit and vegetables. The deal is subject to approval of a proposed creditors arrangement and the Serbian authorities. Lamex Agrifoods, a wholly owned subsidiary of Lamex Food Group, will handle the worldwide sales for the new business, which will be renamed Mondi Lamex.
“We’re very excited about this announcement,” says Phil Wallace, chief executive officer of Lamex Food. “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.”
“Adding red fruits from a high-quality processor like Mondi Serbia to the Lamex Agrifoods portfolio is the first step in a chain of carefully planned investments designed to protect the supply chain of our higher profile customers around the world that procure high-quality frozen fruit,” he adds. “Our financial strength will bring new confidence to the present position, and hopefully give existing creditors the confidence they need to approve the proposals.”
Lamex and Mondi Serbia intend to increase production at the BRC- and Global Gap-approved facility in Kraljevo and develop a strategic relationship on a variety of new developments and markets around the world, including organic products, under the new Mondi Lamex corporate identity. Specific financial terms of the transaction are undisclosed. The transaction is subject to various closing conditions and is expected to close in May.