Total Produce invests €13m in deal

TOTAL Produce has increased its stake in the South African division of international fruit exporter, Capespan, in a €13 million deal.

The transaction, subject to regulatory approval, sees the Dublin-head-quartered fruit distribution company — the former general produce arm of Fyffes — dispose of its 50% stake in Capespan’s European distribution business, Capespan International Holdings.

In exchange for that share disposal, Total will gain 20 million shares in Capespan South Africa and a cash payment of €8.5m. The extra shares boost the Irish company’s stake in Capespan South Africa to 25%, making it the firm’s second largest shareholder.

Total’s 50% stake in Capespan’s Europe division has been acquired by the overall Capespan Group, in South Africa; which had owned the other 50% share of the company.

The European business reported operating profits of £2m (€2.4m) last year.

“We’re pleased to have further increased our shareholding in Capespan, the premier South African produce company with a global reach,” Carl McCann, Total Produce’s chairman, said yesterday.

The announcement caps a busy week for Total Produce.

On Tuesday, the firm announced a €15m acquisition of a 50% shareholding in Dutch produce company, Frankort & Koning — a deal which will boost the Irish company’s presence in mainland Europe; particularly in Holland, Germany and Poland.

All of this week’s transaction news backs up the company’s recent claims that it would be continuing to hunt out new investment opportunities, across both new and existing markets.

While Total’s figures for the first half of its current financial year — as reported back in September — were marginally down, on a year-on-year basis, management called the performance “solid, despite the temporarily difficult trading conditions in certain markets within continental Europe,” adding that it was continuing to “actively pursue further investment opportunities” — a claim backed up by its healthy balance sheet.