Fresh fruit and veg group Total Produce has completed its acquisition of a 35% stake in Canada’s Oppenheimer Group for an initial C$15m (US$15.2m).
Total Produce said today (7 Januuary) that the completed deal allows for the Irish fresh produce firm to increased its stake to 65% in 2017. A price tag for the extra 30% shareholding will be determined based on future profits.
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For now, the deal hands Total Produce a foothold in North America. Oppenheimer sells nearly 40m boxes of fresh produce annually and recorded sales of EUR410m (US$540.6m) in 2011, with 13 sales offices, 3 in Canada, 9 in the USA and one in Santiago, Chile.
“The alliance positions both groups to benefit from the global scale of the combined operations,” said Total Produce. It expects the investment to be earnings enhancing from the date of completion.
As previously announced, Oppenheimer president, chairman and CEO John Anderson will continue to manage the business. He will retain the other 35% of the business after 2017.
For now, New Zealand apple marketer ENZA has also maintained its 15% stake in the Canadian business.
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