A unit of Italy’s GranTerre Group is combining with cured meats peer Parmacotto to form a delicatessen business with joint revenues of €1.1bn ($1.19bn).

Modena-based GranTerre said the combination of Salumifici GranTerre with Parmacotto will aim to boost turnover to more than €1.5bn within five years. The merger creates a corporation with 20 production factories and around 2,500 staff.

The GranTerre Group cooperative, which operates the Salumifici GranTerre business, has signed an agreement with the Zaccanti family owners of Parmacotto through the latter’s investment vehicle to bring the two companies together.

GranTerre said the deal is expected to close in the “coming months”, subject to approval from the local competition authority.

Group president Ivano Chezzi said: “GranTerre, after a significant but rapid process of aggregation and growth, with this operation is proud to complete the valorisation at an Italian and global level of Parmacotto, one of the most prestigious and renowned brands in Italian delicatessen.

“Thanks to the commitment of the shareholders, the resources of GranTerre and those of Parmacotto will integrate, creating value and marking a very important stage for our further growth.”

As well as cured meats and Parma ham, Salumifici GranTerre produces cheeses, butter and ready meals.

Meat brands include Prosciutto San Daniele, Salame Cacciatore and Speck Alto Adige. In cheese, the co-op supplies the Parmigiano Reggiano, Grana Padano, Pecorino, Asiago and Piave lines.

Salumifici GranTerre was set up in 2019 through the merger of Grandi Salumifici Italiani and the Italian firm Parmareggio.

The GranTerre Group business operates 18 production plants in Italy and generated a turnover last year of around €1.6bn.

Meanwhile, Salumifici GranTerre has 14 factories, while Parmacotto has six. Both companies currently serve markets in the EU and the US, with plans to expand further afield post the merger.

Giovanni Zaccanti, the president of Parmacotto, said: “After an important relaunch phase, Parmacotto immediately wanted to take on the biggest challenge: to become the protagonist of a large Italian cured meats hub, where strong and sustainable growth, innovation in processes and products, quality exports, the centrality of consumers and territories will be the true recipes for the success that this operation will surely achieve.”

Parmacotto’s brands of cured meats and cold cuts line-up features Parmacotto, the Parmacotto Selection, Boschi Fratelli and Salt & Twine.

The business operates four production plants in Italy and two in Boston in the US.