Dublin-based fruit retailer Total Produce has agreed to buy up to 65% of Canada’s Grandview Ventures over four years for €32m.
Grandview Ventures, trades as the Oppenheimer Group, and provides fresh fruit and produce to retailers, wholesalers, and food service customers in the US and Canada.
Total is paying an initial €11.7m for 35% of Grandview and will buy a further 30% of the company in 2017 if it meets sales and profitability targets.
The remaining 35% shareholding in Oppenheimer will remain in the hands of the current chairman, president, and chief executive, John Anderson, who has entered into a long-term service contract with Total.
The chairman of Total Produce, Carl McCann, said the deal was part of the company’s growth plans in North America.
“We are very pleased to become shareholders in the Oppenheimer Group. This transaction offers us a significant growth opportunity and represents a continuation of the group’s development strategy of acquiring strong businesses in our sector. We look forward to working with John Anderson and his team who have an excellent reputation in this industry.”
Goodbody analyst, Liam Igoe, rated Total produce as a share worth buying at €0.55 following the acquisition, which he believes will help the company grow in a new market.
“Grandview Venture, which trades as the Oppenhiemer Group, is headquartered in Vancouver, Canada and is a leading provider of fresh produce in the United States, accounting for two thirds of profits, and Canada, accounting for one third of profits. It recorded sales of €410m in 2011, with operating profits of €8.6m.
“The acquisition is a new geographical direction for Total Produce, being the first acquisition in North America, and should act as a precursor for further expansion in the region,” he said.
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