Farsons to diversify into food imports

Simonds Farsons Cisk said yesterday it has signed a preliminary agreement to acquire the assets of Law. Quintano Co. Ltd, one of the biggest food import firms in Malta, representing some 25 brands.

It said the acquisition would involve the transfer of the assets of Law. Quintano to a new Farsons subsidiary that would be managed separately from the other Farsons Group subsidiary companies. All the employees of Law. Quintano would be offered employment with the new company.

Qormi-based Law. Quintano, established in 1909, is involved in the importation and distribution of a range of products - from meat to biscuits, sugar, cheese, milk products from the Danone Group and HP sauces.

The agreement will mean another major move at diversification by Farsons, which has just celebrated its 75th anniversary. The group is involved in beer and soft drink making, the importation of wines, a chain of fast food outlets and property business, among other activities.

The final agreement is subject to a due diligence exercise which would start immediately as well as to the approval of the Office of Fair Trading following the submissions made by the company in terms of the Regulations on Control of Concentrations, Farsons said.

Commenting on the proposed acquisition, Louis A. Farrugia, group chief executive officer of Simonds Farsons Cisk plc, said that the entry into the food importation business was a natural move at a time when the food and beverage market was being totally liberalised. It would enable the group to further exploit its efficient IT systems and its marketing expertise in the fast moving consumer goods sector. At the same time it gave Law. Quintano & Co. Ltd the possibility to expand its product portfolio and further strengthen its position in the food distribution business.

He said such diversification was part of the group's strategic plan to grow both locally and overseas at a time when Malta was joining the European Union.

"Farsons is also currently in the final stages of evaluating a major investment programme to strengthen its manufacturing base," he said.