Irish-based fresh produce company Fyffes has announced that it has entered into an agreement to acquire Everfresh, a leading distributor of fresh produce in Sweden.
Fyffes will acquire 60% of Everfresh on completion for an initial consideration of SEK262.5m (US$34.8m), with the balance of 40% to be acquired in 2007. The total consideration payable for the entire shareholding will be 6.25 times the average consolidated audited net profit before taxation and goodwill achieved by Everfresh during the three years ending 31 December 2006, subject to a maximum of SEK710m. The minimum consideration will be SEK262.5m payable on completion.
The acquisition of the initial 60% shareholding is expected to be completed within two months, subject to the satisfaction of certain conditions. Fyffes expects the acquisition to be earnings enhancing from the date of completion.
“The acquisition of Everfresh represents an important new investment for Fyffes,” said Fyffes chairman Carl McCann.
“This transaction offers us a significant growth opportunity and represents a continuation of our development strategy of acquiring strong businesses in our sector. Everfresh is one of the leading fresh produce groups in the Swedish market. It is a highly mechanised, efficient, low cost operator that adds significant value for its customers,” McCann added.