Produce World and Marshalls have confirmed they are in merger talks, with any potential deal subject to a successful conclusion to negotiations and contracts.
The rationale behind the potential merger would be to consolidate the strengths of both organisations in order to achieve sustained growth in an extremely competitive marketplace, according to a statement from the company.
Marshalls would operate as a separate entity within the Produce World Group, with a combined turnover of £210 million.
A successful deal would see Nigel Clare appointed as managing director, with the support of the existing Marshalls board.
"The Burgess family at Produce World are from a familial farming background like our own, so there are definitely synergies between the two firms," Clare said.
The merged group would fully benefit from improved operational efficiency in areas such as procurement, IT, marketing and supply chain management, whilst maintaining high customer service levels.
Produce World has a strong track record in supply chain management with a wide product range, while Marshalls is an experienced player in the field vegetable sector.
Both companies have well established organic business with a total sales turnover of approximately £40m, and offer their grower bases full rotational marketing support. The potential merger would provide a strong foundation to continue sustainable growth in a rapidly expanding sector.
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