The deal is expected to be completed by the end of February 2020, with the two businesses working together to ensure a smooth transition for Klaas Puul, to support customers, suppliers and employees.
The transaction would allow DSC to focus on accelerating the growth of Foppen, its smoked salmon operation, Sykes claimed.
Klaas Puul was founded by entrepreneur Evert Mooijer, creating one of Europe’s largest seafood processing companies.
Capital investment
Under DSC’s ownership, Klaas Puul has grown and has benefited from substantial capital investment to further support the infrastructure within its processing factories in Volendam, Edam and Tangier, Morocco.
The combination of Sykes Seafood and Klaas Puul’s shrimp business would create a €300 millon (£257m) pan-European seafood business with expertise in all species of shrimp, according to Sykes. The transformed business would offer customers across Europe a wide range of high-quality products in chilled and frozen formats for the retail, foodservice and manufacturing sectors.
Sykes Seafood is a UK-based, privately owned company, focused on providing customers with quality seafood that is sourced sustainably to the highest technical standards.
Sykes said it recognised the strength of Klaas Puul’s brand, trusted reputation and loyal employees, who had helped to build a market-leading business in Europe, complementing its own UK operations.
Synergies
The two businesses already share many synergies and similarities. The agreement would provide a solid background for future growth and allow greater efficiencies in sourcing and production, according to Sykes. In a statement, it claimed both firms operated highly efficient and automated production facilities, which were configured for high-quality and high-volume production outputs.
The transaction is subject to works council and required regulatory approvals.
