Associated British Foods (ABF) has agreed to acquire Acetum, an Italian producer of Balsamic Vinegar of Modena (BVM).

BVM produced by the Acetum has received European Protected Geographical Indication status because of its unique manufacturing tradition and provenance, as well as its quality.

Acetum was established by Cesare Mazzetti and Marco Bombarda in the Province of Modena in Northern Italy. The Italian province is traditionally associated with the production of balsamic vinegar.

The products are offered under various brands, including Mazzetti, Fini and Acetum.

In addition to the BVM, Acetum is also engaged in the production of a wide range of vinegar as well as other condiments, which are supplied to more than 60 countries worldwide.

"We have ambitious plans to grow these brands and the acquisition will broaden our international presence in speciality foods."

ABF is a diversified international food, ingredients and retail group and it operates in 50 countries across the globe.

Associated British Foods said: “We have ambitious plans to grow these brands and the acquisition will broaden our international presence in speciality foods.”

Financial details of the deal have not been disclosed by both companies.

The transaction is expected to close after obtaining antitrust clearance in Germany and Austria.

Upon completion of the deal, Cesare Mazzetti and Marco Bombarda will remain in the business.

Last year, Acetum is reported to have generated a net sale of €103m.