Aviko, a unit of Dutch agri-industrial group Royal Cosun, has agreed to acquire the Unilever potato processing plant in Germany in a deal that also includes a strategic partnership.

The deal was executed by Aviko’s business unit Aviko Rexona, which produces potato granules and potato flakes for the foodservice channel and retail markets.

Financial details of the deal have not been disclosed.

Royal Cosun CEO Albert Markusse said: “We are very pleased with this acquisition, which is fully aligned to Cosun’s ambition to obtain a leading position in plant-based ingredients.

“The expansion of the production capacity and the strategic partnership with Unilever are in line with the positive development of the potato flakes and granules market.”

According to the agreement, Aviko will be acquiring the production facility located in Stavenhagen in north-east Germany.

With a workforce of nearly 210 employees, Unilever’s German facility processes potatoes into mashed potatoes, dumplings, gnocchi and instant snacks and products for Unilever brands, including Pfanni, as well as Knorr and other B2B customers.

Under the deal, Unilever will retain the ownership of the brands.

Aviko Group CEO Chris Deen said: “Total worldwide demand for potato granules and flakes is constantly increasing and is partly driven by strong growth in the demand for salty snacks on all five continents.

“This acquisition ties in seamlessly with Rixona’s ambition to become the world market leader in potato granules and flakes.

“We intend to fully utilise Stavenhagen’s potential production capacity. The additional volume and extra sales will further strengthen our position and support our ambitious growth trajectory.”

The details of the deal have been registered with the German competition authority and it is expected to be completed by the end of this year.