Bonduelle has confirmed the sale of its packaged salads business in Germany as part of plans to return the group to profit.
The disposal of the assets to Taylor Farms was completed yesterday (31 March) for an undisclosed sum, the France-based fruit and veg group said in a statement.
Taylor Farms is a North American producer of salads and fresh foods, with production facilities across the US, Canada, and Mexico. The family-owned business is based in Salinas, California.
Bonduelle said today the sale of the packaged salads business in Germany “marks an important step towards improving the group’s operating profitability” under a programme put forward in October.
Taylor Farms announced the acquisition as a deal it carried out with Foodiverse, the Spanish group in which it invested in 2023.
In a statement, Taylor Farms said the companies had acquired two production plants that make ready-to-eat salads.
The company said Foodiverse would “within its European business operations manage all activities for the unified businesses”.
Taylor Farms added: “This strategic move allows Foodiverse, along with the partnership of Taylor Farms, to strengthen its position in the German market and boost innovation in the fresh and healthy food sector.”
Bonduelle announced two prospective deals in August: one in Germany, now confirmed, and another, with salad maker Les Crudettes, a subsidiary of French food-and-beverage company LSDH Group, concerning the disposal of a clutch of assets in France.
Just Food has asked the publicly-listed Bonduelle for an update on the plans to sell its France packaged salads business.
After the transaction with Taylor Farms, Bonduelle said it will continue to market canned and frozen vegetables in Germany and has entered a licensing agreement with the buyer for packaged salads.
It described the packaged salads business in Germany as “structurally loss-making” and represented sales of €60m ($64.8m).
Bonduelle showed some progress in returning the group to profitability in the first half of its current fiscal year under the guidance of CEO Xavier Unkovic, who joined the business in June 2023.
Net income from continuing operations climbed to €17.2m from €6.4m a year earlier, although on a consolidated basis Bonduelle delivered a loss of €5m versus a €4.5m profit in the corresponding period.
Sales revenue in the half to 31 December dropped 1.5% in like-for-like terms to €1.12bn and was down 1.7% on a reported basis, the company revealed in March.
Under its three-year Transform to Win project, Bonduelle is trying to “create the conditions for transition, then a rebound, and finally an acceleration of the company’s performance around an organisation aligned with shared objectives and ambitious strategic planning”, the company said in its full-year fiscal 2023/24 results announcement in October.
Those results showed Bonduelle registered a net loss of €119.8m that year, compared to a profit of €14.5m in the previous 12 months.
Operating income, however, climbed 14.3% to €75.3m.
Group sales increased 2.7% on a like-for-like basis to €2.37bn but dropped 1.4% in reported terms due to the exchange-rate impact.
Sales in Europe were up 2.9% like-for-like at €1.55bn. Elsewhere, sales rose 2.4% to €813.6m.
