Brassica and prepared vegetable supplier Marshalls has reached an agreement to acquire the site and assets of Univeg’s production facility at Kirton, Lincs.
The intention is to integrate the Univeg site with Marshall’s existing operations at Butterwick, near Boston, should the deal - which is still subject to contract - go through. The acquisition should provide "a marketing opportunity for a range of products from the Univeg grower base and the prospect for continued employment for many of the employees," the two companies said in a joint statement.
Univeg, which serves both multiple and processing customers, supplies a range of brassicas, organics - including leafy salads and exotic vegetables - as well as early potatoes, had issued a prospectus regarding the sale of its assets. The offer has come about following a restructuring of the vegetable business at Sainsbury’s - a customer of both companies - revealed in December 2003 and in which Univeg lost out.
"We are extremely pleased with this potential acquisition which will deliver considerable benefits to our customers and growers alike," said Marshalls md David Marshall.
The main advantage for Marshalls is the strategic position of the Kirton site which will facilitate a more rapid transfer of product from field to store for Marshall’s production in the area south of Boston, cutting down on traffic congestion in the area and minimising food miles.
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