Bakkavör buys food and drink supplier

The Bakkavör Group has acquired a 48% share in the food and beverage supplier Gastro Primo in Hong Kong, with a non-binding call option to acquire the remaining 52% in 2010. The consideration price remains confidential.

Gastro Primo specialises in supplying food service companies, catering establishments and restaurants, as well as retailers in Hong Kong and Macau with high quality food and beverage products. Its diverse product range includes, for example, ready meals, soups, sauces, fruits, vegetables, salads, sandwiches, as well as fruit juices and smoothies.

The company was established in Hong Kong in 1990 and currently employs over 170 people in Hong Kong and Macau. Its turnover in 2007 was US$11 million.

Gastro Primo will be accounted for as an associate company from the acquisition date. The acquisition will not have a material effect on the Group's financial results.

Ágúst Gudmundsson, CEO Bakkavör Group said: "We are pleased to announce Bakkavör Group's further development in China with the investment in a food and beverage provider in Hong Kong, which is one of the most sophisticated food markets in South East Asia. Gastro Primo is a well-run business, with an experienced management team, strong customer relationships and a good potential for further growth. We see opportunities in co-operation with our existing Chinese businesses that will further support our expansion and future growth in China."