Fyffes paid £34.4M (CAD$59.1M) for 100% equity of All Seasons Mushrooms today (September 8), funding the acquisition through existing bank debt.
The acquisition followed the purchase of mushroom producer Highline Produce by the company in April 2016.
All Seasons operates from four facilities and is one of the largest mushroom producers in western Canada. Its geographic reach complement Highline Produce, according to Fyffes.
“We are very pleased to have acquired All Seasons. It represents an excellent strategic addition to the Highline business which we acquired earlier this year,” said Fyffes chairman David McCann.
‘Highest quality mushrooms’
“Together, Highline and All Seasons will be well placed to provide Canadian customers with a consistent supply of the highest quality mushrooms from coast to coast, while continuing to strategically supply US customers with premium and organic mushrooms.”
In the absence or further investment activity, Fyffes expected its 2016 year-end net debt to be less than 2.75 times earnings before interest, taxes, depreciation and amortisation.
Current All Seasons ceo Frank Moscone will remain in the business and said the company was delighted to be joining the Fyffes group.
Coverage nationwide
Moscone also said he was excited about the potential in working with Highline to provide coverage nationwide for the companies new combined customer base.
Established in 1901, Dublin-based Fyffes produces, ships, ripens and distributes a wide range of fruits, with focus on bananas, pineapples and melons.
Its ripening facility in Basingstoke is the largest in Europe and is able to accommodate more than 2,100t of bananas at any one time.
The company was set to become the world’s largest banana firm after it merged with Chiquita brands in March 2014, but it terminated the agreement in October the same year.