Fyffes has announced the acquisition of Canadian mushroom processor Highline Produce in a C$145m (US$111.2m) deal.
Highline Produce is a mushroom business operating out of five facilities. In a statement Fyffes said Highline is the “largest operator” in the mushroom category in Canada with retail customers making up 75% of sales and the rest accounted for by wholesale, foodservice and canning consumers.
Highline’s management team led by CEO Glenn Martin will continue to run the business.
The transaction will be immediately accretive for Fyffes, resulting in a c.13% increase in its current 2016 target adjusted EPS range on an annualised basis.
“Highline is a very fine business with a strong position in an important product category. We look forward to working with Glenn Martin and his management team to continue to develop the business. This transaction fits perfectly with Fyffes strategic objective of adding an additional product to its existing three through the acquisition of an established, successful, integrated operator in a category with significant scale,” said Fyffes chairman, David McCann.
Glenn Martin, Highline CEO, added: “We are excited about this transaction and delighted to be joining Fyffes, given its long history and successful track record of growth. We look forward to working with Fyffes management as we continue to grow our own business into the future.”