Brazilian fruit producer and exporter Agrícola Famosa is merging with Spanish melon and watermelon producer and distributor El Abuelo.
Financial details of the trnsaction have not been disclosed.
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This merger will position the combined entity as “Europe’s largest melon and watermelon supplier”, Agrícola Famosa said in a statement.
The combined revenue of Agrícola Famosa and El Abuelo exceeded €230m ($241.2m) last year, with a total commercial volume of more than 320,000t of fruits.
This deal is a strategic move by Agrícola Famosa as it aims to “become the leading supplier of these fruit categories in Europe”.
Following the merger, its annual production is expected to increase from last year’s 270,000t to 350,000t, while also broadening its range of fruit offerings, reported Brazilian newspaper Valor International.
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By GlobalDataEl Abuelo, founded in Murcia, Spain, in 1928, has operations in Europe and Senegal.
Its European operations source melons and watermelons locally, while its Senegalese operations cultivate 350ha of land.
Agrícola Famosa CEO Carlo Porro was quoted by the Brazilian newspaper as saying: “This acquisition ensures uninterrupted supply to our customers. Europe is our top market, and we plan to offer melons and watermelons year-round. This is just the beginning, as we are also exploring other acquisition opportunities.”
Despite the merger, the leadership teams at El Abuelo and Agrícola Famosa will remain in place, retaining their brands, autonomy and management structures, while driving “operational and commercial synergies”,
The deal, which is subject to regulatory approvals, is expected to close in the coming weeks.
Agrícola Famosa posted a net revenue of R$1.07bn ($184.1m) last year, with its UK-based subsidiary Melon&Co generating £50m ($62.9m) in revenue.
The merger with El Abuelo builds on Agrícola Famosa’s prior global partnerships. In 2021, the company “formed an alliance” with Citri&Co, Europe’s “largest” citrus fruit producer, to establish a global fruit supply network.
