The UK-headquartered group will buy a majority holding in the red fruit specialist Mondi Serbia – a company it has sourced from for a number of years.
The deal, subject to Serbian approval, is expected to close in May and will see the business renamed Mondi Lamex.
CEO of Lamex Food Group Phil Wallace said that Mondi Serbia had been hit hard by the continued increase in raw material costs and a lack of available finance.
The acquisition, he said, would ensure stable finances for the Serbian supplier.
“Having access to Lamex’s financial stability, worldwide sales, technical and global logistics expertise will ensure a seamless transfer for existing Mondi Serbia customers,” he said.
“We believe that Lamex’s experience in the technical assurance and sale of frozen fruit will bring significant benefits to the new business,” he added.
Part of a broader high quality investment plan
The CEO said the acquisition formed part of a wider investment plan that seeks to invest in the quality of ingredients throughout Lamex’s supply chain.
“Adding red fruits from a high quality processor like Mondi Servia 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 said.
Lamex said that under the new business it would invest in new developments, including organic products, and up capacity at the Kraljevo facility.