"I can confirm a deal has been done with QV Foods which will see the transfer of the retail service," Bascetta says. "In basic terms it was a straight-forward commercial decision to sell this part of the company. Both businesses have been competing head to head which was not a productive way of doing business. This is a more constructive way of moving forward."
MBM says despite selling its retail and foodservice division, the company retains a significant part of the business, mainly on the industrial side involving peeling operations.
Lincolnshire-based QV Foods says the purchase will allow further expansion of the QV business and will resolve the constraints which recent growth has highlighted.
"The support of the enlarged team and additional facilities will enable QV to continue to provide an excellent service to existing customers of both businesses, and we look forward to working with our extended supply base to support our service delivery and create new opportunities together," QV Foods director Simon Martin says in a statement.
QV Foods is a wholly owned subsidiary of its parent company, AH Worth and Co. Ltd. It operates from four purpose built factories and farms 4,500 acres.
Duncan Worth -- the fourth generation of the Worth family to run the family farms -- owns 4,500 acres in South Lincolnshire with 850 acres given over to potatoes. They employ over 340 staff and with an annual turnover of about £50 million (US$71.37 million).
MBM markets 600,000 tons of potatoes annually and is one of the UK's leading potato suppliers. With its own specialist seed division it also markets a number of exclusive potato varieties including Anya, Juliette, Harlequin, Rembrandt, Daisy and Sassy.