Verus International, Inc., Gaithersburg, Md., announced plans to acquire the French fry operations of a Middle East-based supplier.
This acquisition will give Verus an established presence in the frozen food category in its existing hotel, restaurant and similar markets. The French fries will be sold as branded products.
“This is not one of our previously-mentioned acquisition candidates, but is a strategic opportunity to take over an established product category being sold by a multi-line food company in transition,” says Anshu Bhatnagar, chief executive officer. “We knew this supplier well, and their French fry products are sold to our target customer base, so this was the kind of strategic bolt-on that we think can accelerate our expansion plans in frozen food. This also aligns with our goal to concentrate on higher-margin, branded products in our traditional markets. French fries were high on our list of preferred growth initiatives, so the timing of this transaction is ideal. We hope to add more of these product line acquisitions in the future, giving us additional sources of organic growth, along with a more varied product mix that can generate new business with existing customers.”