The deal, worth up to EUR15m (US$19.7m) is subject to normal regulatory clearances

The deal, worth up to EUR15m (US$19.7m) is subject to normal regulatory clearances

Total Produce, the Ireland-based fresh produce firm, is set to acquire 50% of fruit and vegetable trader Frankort & Koning.

The deal, announced today (20 December), is worth up to EUR15m (US$19.7m). Total Produce will pay an initial EUR6m for the stake and an additional EUR9m over the next number of years if certain profit targets are met.

The transaction is subject to normal regulatory clearances. The group will continue to be managed by the existing management team, each of whom has entered into a long term service agreement as part of the transaction.

Total Produce chairman Carl McCann said: "We are very pleased to become shareholders in Frankort & Koning and look forward to working with our new partners to develop the business further. This acquisition adds to our presence in key European markets."

Frankort & Koning CEO Theo Koning said the company was "very happy" to join forces with Total Produce. "This represents an important step in the development of our group and will help to ensure that Frankort & Koning continues to be in a position to offer the highest level of service to our customers in the future," he said.

Headquartered in Venlo, Frankort & Koning has operations in the Netherlands, Germany and Poland and employs 160 people. The company posted a turnover of EUR296m in the year ended 31 December 2010.