Rieber & Son Sells Onions Rings Activities to Subzero Frozen Produce

Rien Van Meel, CEO of Cronions, said: "The divestment allows us to solely focus on our crispy fried onion activities, a core profitable product line within the overall portfolio of the Group.

3 Sep 2009 --- Rieber & Søn’s business unit Cronions has signed an agreement to divest the natural and formed frozen onions rings activities.

Subzero Frozen Produce Holding BV has acquired these activities performed by Rieber Kruiningen, which is the object of sale.

“The divestment is a part of Rieber & Søn’s strategic platform “Our Future” reviewing and focusing on what is our core business”, said CEO Patrik Andersson.

Rien Van Meel, CEO of Cronions, said: "The divestment allows us to solely focus on our crispy fried onion activities, a core profitable product line within the overall portfolio of the Group. Our opinion is that further activities within frozen onion rings are better suited to an owner with similar products”.

Cronions had a turnover of approx. 35 mEUR in 2008. Rieber Kruiningen represented approx. 8 mEUR of this turnover. For the last couple of years, onion rings has not been a profitable product for Cronions. The divestment of Rieber Kruiningen will improve the profitability of Cronions.

The transaction will include 26 employees, all equipment and machinery. The factory building of Rieber Kruiningen is rented, and the activities will continue with new owner.