Pinguin Foods of Belgium has announced that it will take over the frozen vegetable activities of the ailing Fisher Frozen Foods, and with it an important production and packaging department in King's Lynn in Norfolk, the most prominent vegetable region in the UK.
Negotiations with the receivers reached completion yesterday when the joint bid of Pinguin and Frigoscandia concerning the purchase of the net assets was finally accepted.
Fisher has been the representative of Pinguin in the United Kingdom for more than 20 years, and also held a 30 per cent stake in Legum Land Surgeles (LLS). Pinguin took undertook Fisher's interest in LLS in April 2002 and by doing so, it acquired a controlling interest of 60 per cent.
Fisher represented 10 per cent of Pinguin's turnover in Belgium and 50 per cent of the turnover of LLS. Meanwhile, Fisher Frozen Food was the largest English producer and supplier of deep-frozen vegetables in the UK retail, food service and food industry, as well as the English market leader for private label of deep-frozen peas. Around 30 per cent of the total English pea production was processed in King's Lynn. With 350 employers the division realised a turnover of €168 million in 2001.
Pinguin paid €2.9 million for the net assets (machinery and equipment) and by doing so, acquires a vegetable production unit with a capacity of 100,000 tons per year, including the largest and most modern packaging department for frozen products in Europe.
An agreement has been made with Frigoscandia, which runs a freezer-storage and distribution activity on the same territory, to rent land and buildings at the site for the handling and the storage of frozen products.
Pinguin's purchase means that supplies to current Fisher customers can now be resumed, and after a short interlude supplies from Belgium and France will also resume.
Pinguin Foods has now set itself the aim of being the UK market leader for frozen vegetables. For this year, a turnover of €28 million is expected, while for 2003, the business plan foresees a turnover of €60 million.
Pinguin specialises in freshly frozen and cooled vegetables and vegetable preparations and has seven other European plants in Belgium and France.