Prosecutors said Friday the company in North Brabant province is believed to have processed horsemeat from the Netherlands and Ireland, and mixed it with beef before selling the mixture as "pure" beef.
Prosecutors said in a statement the company is suspected of "fraud and money laundering."
The company was not named, in line with Dutch privacy laws.
Food safety investigators raided business premises and a home, seized documents and took samples of meat for analysis.
The Dutch Food Safety Authority announced Thursday it has launched a large-scale investigation throughout the food chain — from slaughterhouses to supermarkets — as part of Europe-wide efforts to trace fraudulently traded horsemeat.