Sector News

Fyffes buys Canada’s All Seasons Mushrooms for €41m

September 8, 2016
Food & Drink

Food distributor Fyffes has acquired a second large Canadian mushroom business just months after it bought Highline Produce for €99 million.

The company said on Thursday it had acquired All Seasons Mushrooms for CAD$59.1 million (€41 million) to acquire 100 per cent of the equity in the company and refinance its debt. Fyffes said it was funding the deal through existing bank debt.
The transaction is expected to be immediately accretive for Fyffes, the group said.

All Seasons, which is based in British Columbia, is one of the largest mushroom producers in Western Canada. It is a fully integrated producer operating from four facilities, of which three are owned and one is leased. The company’s current chief executive Frank Moscone is to remain in the business post acquisition.

Fyffes has based its CAD$59.1m valuation of All Seasons on a 7.5 times multiple of its 2015 reported earnings before interest, taxes, depreciation, and amortization(ebitda) of CAD$7.8m.

The group said that in the absence of further investment activity, it would expect its 2016 year end net debt to be less than 2.75 times ebitda.

The estimated book value of All Season’s net assets amounts to CAD$39 million (€26.9 million) on a debt free basis.

Given the timing of this transaction, the impact on Fyffes 2016 earnings is expected to be limited to a 1 per cent increase in adjusted earngings per share (EPS). On an annualised basis, the All Seasons transaction would increase Fyffes current 2016 target adjusted EPS range by about 5 per cent.

“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.

“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,” he added.

By Charlie Taylor

Source: Irish Times

comments closed

Related News

September 22, 2023

Food safety in focus: Japan researchers advance rapid bacterial testing tech to prevent food poisoning

Food & Drink

A new technology that speeds up bacterial testing in food is showing promise to “revolutionize” the process of testing bacterial viability in food, according to Japan-based scientists who discovered the breakthrough in food safety. The technique can reportedly verify food safety before shipment from factories and prevent food poisoning.

September 22, 2023

Heineken Mexico invests €430m in new brewery

Food & Drink

Heineken Mexico plans to invest €430 million in the establishment of a new brewery in Yucatán, aiming to expand sustainable brewing practices and foster community growth. Construction will take place in the Kanasín municipality, marking the company’s inaugural brewery in southeastern Mexico.

September 22, 2023

KDP appoints Tim Cofer as COO, to assume CEO role in 2024

Food & Drink

Keurig Dr Pepper (KDP) has appointed former Mondelēz International executive Tim Cofer as its new chief operating officer, with plans for Cofer to succeed current CEO Bob Gamgort in the second quarter of 2024. Cofer, who will join KDP on 6 November, will work closely with Gamgort while in the capacity of COO.

How can we help you?

We're easy to reach