Hilton Food Group PLC has agreed to acquire the remaining 50% of its joint venture partner Dalco Food, a vegan and vegetarian food producer based in the Netherlands.
The UK food packaging group, which mostly focuses on meat, poultry and fish, wants to diversify its offer in the booming plant-based industry.
The FTSE 250 firm built a 50% stake in Dalco in 2019 and said its investee has performed ahead of management's expectations ever since.
The pair will develop new products and increase capacity of the veggie segment.
Shares rose 1% to 1,180.75p on Tuesday at the opening bell.