Japanese conglomerate Sumitomo is set to acquire fruit firm Fyffes in a deal worth €751 million.
The acquisition represents a premium of around 49% to Fyffes’ current share price of €1.50, and 37% to Fyffes’ all-time high share price of €1.62, recorded last April.
In addition, Fyffes shareholders will be paid a final dividend in respect of calendar year 2016 by Fyffes of €0.02 per share in cash, bringing the total amount to be received by Fyffes shareholders to €2.25 per Fyffes Ordinary Share in cash.
Headquartered in Dublin, Ireland, Fyffes, which deals in bananas, melons and pineapples, posted a turnover of €1.2 billion last year.
"We believe this transaction represents a compelling proposition for our shareholders and crystallises the substantial value created in recent years through the various strategic developments and the strong operating performance of our Group,” said Fyffes chairman David McCann.
“Our employees, customers, suppliers and joint venture partners will benefit from Fyffes being part of an enlarged group with greater scale, reach and resources to broaden and accelerate delivery of Fyffes' strategic objectives. We look forward to working with the Sumitomo team to develop and enhance our Group's strategy and to build on its long track record of successful growth".
Hirohiko Imura, Representative Director, Managing Executive Officer of Sumitomo said that the group was looking forward to providing Fyffes with “experience, support and investment to continue to build on the tremendous Fyffes skills and experience and reach greater potential.”
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.