Two of the Netherlands' biggest seafood processors will be joining forces: shrimp giant Klaas Puul and Costco salmon supplier Foppen, one of Europe's biggest salmon processors.

The new entity will operate under the name "Dutch Seafood Company" and will boast a turnover of €310 million ($365.6 million), according to Financieele Dagblad.

H2 Equity Partners, the private equity backer of Klaas Puul, announced the deal to merge the two companies on Tuesday. H2 acquired a controlling stake in the company two years ago, when the founding Mooijer family decided to take a step back.

Klaas Puul's turnover amounts to €170 million ($200.5 million), 90 percent of which comes from the sale of shrimp.

Foppen, based in Harderwijk, had still been family-owned, with an annual turnover of €140 million ($165.1 million) and 400 employees.

New man on top

Under the new ownership structure, H2 has a controlling interest but not a majority stake. Other owners are the Mooijer and Foppen families.

Dutch Seafood Company will be led by André van der Padt, who joins the firm from Dutch cereal products manufacturer Meneba.

The management teams of both companies will remain intact, however, Managing Director Jan Foppen will no longer be involved in the daily management but will take over new product development and purchasing tasks.

"The merger of these two wonderful organizations will provide us with a stronger market position and it allows us to serve our clients even better," said Van der Padt in a statement sent to IntraFish. "By applying and implementing all our expertise and experience into our processes, we can respond even better to the market requirements and opportunities."

Jan Foppen said the merger will give "us a stronger innovative capacity and access to a diverse range of products on the global market. This way, we will be able to offer our clients high-quality salmon and shrimp products, now and in the future, whereby the highest standard in food safety and a consistent production quality are the number one priorities."

Sander van den Berg, CEO of Klaas Puul, added; "Our new production facilities for the processing of shrimp in Volendam and Edam offer the combination of flexibility and additional production capacity which will, in turn, create scope for a further development of our product and client portfolio on both a national and international level."

Expanding processing capacity

Klaas Puul's "modest" salmon activities will be moved to Harderwijk while Foppen's small shrimp production will be accommodated in Volendam, according to FD.

The companies said they run into limitations of their processing capacity. By merging production and expanding capacity, they expect to gain additional shares in the international markets.

In addition, they aim to innovate more and gain better access to the global market, reports FD.

They will reportedly construct a shrimp processing factory in northern Morocco, which will employ 1,500 staff and open its doors in fall 2019.

In 2015, Klaas Puul constructed its own facility in Tangier for €15 million ($17.7 million).

The management boards expect to finalize the merger completely in August 2018, subject to the approval of the works council of Klaas Puul and the Authority for Consumers & Markets.

Processor

Klaas Puul, Foppen to merge and form new company