Belgium-based frozen vegetables processor Pinguin nv has increased its stake in French company Legum’Land Surgelés (LLS) to 60%, with a buyout of the 30% owned by the Albert Fisher Group (Fisher Foods).
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This makes Pinguin the major shareholder in the group, while two agricultural co-operatives, Lurberri and Primco, each maintain a 20% share. The group’s commercial relation with Fisher Foods will continue however.
Pinguin says that becoming a majority holder in LLS is important in view of the company’s strategy and philosophy.
LLS, based in the south-east of France, has had a difficult time in 2000 and 2001 mainly due to the low market-prices of sweetcorn, but also due to technical problems during start-up of its second production line. The sweetcorn market in Europe has now improved however, and prices have increased. The company also stressed that all technical problems have been solved.
As a result, provided a normal crop, the production-outcome looks set to increase. The budget for 2002 forecasts a production volume of 38000 tons (84000k lbs) in total, of which 13000 tons (29000k lbs) will be sweetcorn.
In view of all these elements, LLS expects a positive year-result. In 2001 LLS had a turnover of €13m (US$12m) with a cash-flow of €1m.
