Belgium-based Univeg has completed a privatization deal for a banana producer in the Republic of Suriname.

The Ministry of Agriculture of the Republic of Suriname and Univeg said in a news release the deal will give Univeg 90% of the SBBS (“Stichting Behoud Bananen Sector”), with the Republic of Suriname retaining 10% of the shares.

Suriname is located on the northeastern Atlantic coast of South America. Under the terms of the agreement, the Suriname company, with nearly 5,000 acres of bananas and annual sales of $65 million, will start operating under the name of FAI N.V. (Food and Agriculture Industries N.V.).

“The business reasons for this acquisition are in line with Univeg’s continued strategy to secure long term sourcing requirements to optimally service its retail customers,” Francis Kint, chief executive officer of Univeg Group said the release. “Univeg is aware of its responsibilities towards the local communities and believes in the huge potential of FAI as a leader in sustainable agricultural practices and positive social impact.”

Hendrik Setrowidjojo, Ministry of Agriculture of the Republic of Suriname, said in the release that Univeg will help sustain the banana industry there over the long term.

“In selecting Univeg we found a good home for the future development and marketing of the Suriname banana,” he said in the release.