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Aviko Rixona's acquisition of potato activities

24 January 2005

Aviko Rixona, a member of the Aviko group, and Nestlé Nederland have reached agreement on Rixona’s acquisition of Nestlé’s potato activities in Venray, the Netherlands. The acquisition was first announced in mid-May 2004. The activities are expected to be transferred on 31 January 2005.

Rixona will acquire all the potato processing activities. The takeover will strengthen Rixona’s position as European market leader in potato granulates and flakes for the industrial, foodservice and retail markets. The production facilities and well-trained personnel in Venray will offer Rixona opportunities to realise its ambitions.

Nestlé Nederland and Rixona have signed a multiyear agreement on the production of potato products for Nestlé, which will remain responsible for the marketing and sale of potato products under its own brand names. Nestlé’s other culinary production activities in Venray are not included in the transaction.

All staff engaged in Nestlé’s potato activities in Venray will be transferred to Rixona. Rixona’s and Nestlé’s works councils have advised positively on the transaction.