Fyffes snaps up a second Canadian mushroom business in a year
Fyffes, the Irish fruit producer, has bought its second Canadian mushroom distributor in a year as it continues to pursue a strategy of growth through acquisition.
The company paid CAD$59.1m (£34.4m) for All Seasons Mushrooms, one of the largest mushroom producers in Western Canada.
The acquisition of the British Columbia-based business complements Fyffe’s acquisition in March of Highline Produce, an Ontario-based mushroom distributor in eastern Canada, and further diversifies the business.
David McCann, Fyffes’ chairman, said: "The acquisition represents an excellent strategic addition to the Highline business which we acquired earlier this year.
“Together, Highline and All Seasons will be well placed to provide Canadian customers with a consistent supply of the highest quality mushrooms from coast to coast, while continuing to strategically supply US customers with premium and organic mushrooms.”
The announcement comes days after Fyffes unveiled a strong set of half-year results. Pre-tax profit rose 15.4pc to €35.6m (£30m) in the six months to June 30, while sales were up by nearly 17pc to €631m.
Frank Moscone, chief executive of All Seasons, who will remain in the position following the acquisition, said: “We are delighted to be joining Fyffes and are excited about the potential in working with Highline to provide nationwide coverage to our combined customer base.”
Fyffes began trading in the 1880s when it took its first commercial delivery of bananas from the Canary Islands. Since then, it has grown into one of the largest fresh produce distributors in Europe and ranks among the top five globally.
It also sells pineapples and melons, with operations in the Americas as well as in Europe.
In 2014 Fyffes failed in its bid to merge with American fruit and vegetable giant Chiquita. The $1bn (£699m) deal would have created the world's biggest banana group by sales.
Article Resources:http://www.telegraph.co.uk/
