Total Produce in €15m Dutch deal

THE Dublin-based fruit distribution company, Total Produce, is to spend up to €15 million on a 50% shareholding in the Dutch produce company Frankort & Koning.

The agreement will significantly boost Total’s presence in mainland Europe.

The Dublin and London-listed company is the former general produce arm of Fyffes.

Headquartered in the city of Venlo, which lies on the Dutch/German border, Frankort & Koning has operations in the Netherlands, Germany and Poland.

Last year, the company generated revenues of €296m and it has averaged post-tax profits of about €3m over the past three years.

Total Produce will initially paye the Dutch firm €6m in cash.

The remaining €9m of the overall consideration will be paid in several tranches “over the next number of years” if certain profit targets are met.

Theo Koning, the head of the Dutch company, the management team of which will remain in place, said: “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.”

This acquisition backs up Total Produce’s recent claims that it will continue to hunt out investment opportunities.

Even after publishing a stagnant set of results for the first six months of the year, in Septemberchairman Carl McCann said the company continued “to actively pursue further investment opportunities in both new and existing markets”.

“This acquisition adds to our presence in keyEuropean markets,” Mr McCann said yesterday of the Frankort & Koning investment.

Mr McCann said Total was looking forward to working with its new partners to develop the Dutch business further.

He added that this acquisition should be earnings enhancing to Total Produce from the date of completion.