Total Produce in €15m US takeover

Irish fruit distribution company Total Produce is eyeing further North American acquisitions on the back of purchasing one of the continent’s main produce exporters for an estimated €10m to €15m.

The acquisition of Lafayette, California-based The Fresh Connection is Total Produce’s seventh North American investment, with combined revenues from those interests amounting to $1.2bn (€1.03bn). The Fresh Connection generated sales of around $165m last year.

“This transaction further broadens our US presence and provides us with strategic access to other key markets,” Total Produce chairman Carl McCann said.

The company is also considering further acquisitions in North America and Europe. Analyst reaction was upbeat and the firm’s shares shot up almost 2%.

“It’s a good acquisition as they focus on the Californian coast. They have the funds to make further acquisitions,” said Darren McKinley, senior analyst at Merrion Capital.

Davy said the deal will add around 3% to its 2018 earnings forecasts for Total Produce and will be earnings and value accretive.