Geest is to form a new business to combine its English village salads (EVS) sold at Asda and Thames Fruit, which imports citrus fruits and melons to the supermarket.
The aim of the new business - NewCo - is to simplify the supply chain for imported produce to Asda.
Under the new contract, Geest would take a 76% share of NewCo and the owner of Thames Fruit, Emilio Teresa, would hold the remaining 24%.
The deal is expected to be finalised in January, with NewCo becoming operational in the second half of 2004.
The business would operate from two sites in Yorkshire and Kent and is anticipated to bring in pre-tax profit of £1.6m in the first year.
EVS would continue to supply Asda separately with produce sourced from the domestic market.
The aim of the new business - NewCo - is to simplify the supply chain for imported produce to Asda.
Under the new contract, Geest would take a 76% share of NewCo and the owner of Thames Fruit, Emilio Teresa, would hold the remaining 24%.
The deal is expected to be finalised in January, with NewCo becoming operational in the second half of 2004.
The business would operate from two sites in Yorkshire and Kent and is anticipated to bring in pre-tax profit of £1.6m in the first year.
EVS would continue to supply Asda separately with produce sourced from the domestic market.
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