Cooks Food Group has announced that it has entered a conditional sale and purchase agreement to acquire fresh fruit and vegetable processor, Progressive Processors Limited.
Progressive Processors will be acquired through shares in Cooks Food Group (Cooks) with no cash component payable. It has been proposed that a first tranche of 2.5 million shares will be issued at completion with three further tranches of shares to be issued over the next three years.
The agreement will be subject to approval by Cooks shareholders as well as NZAX listing rules.
Cooks are also seeking approval for the acquisition of Franchise Development Limited, Esquires Coffee (UK) Limited and Esquires Coffee Houses Ireland Limited – which was announced earlier this year.
In addition to the acquisition of the offshore Esquires Coffee Houses business, Cooks believes that the purchase of Progressive Processors will add strategic value to the company’s portfolio.
The acquisition will allow the company to have greater control of its operations and act as suppliers of product to Esquires Coffee Houses where it is economical to do so.
Cooks chairman Keith Jackson says that the acquisition of Progressive Processors is in line with the company’s commitment to export high quality product around the globe.
“And that includes through the Esquires Coffee Houses network which we will seek to substantially grow. We are delighted to welcome Neil and his team to the Group and look forward to formalising all transactions shortly,” said Jackson.
The acquisition of Progressive Processors and Esquires Coffee Houses will be presented to shareholders in September.