Total Produce Ends Capespan Partnership, Sells 25% Stake

Irish fresh produce provider Total Produce is to sell its 25.3 per cent shareholding in global fruit company Capespan Group to South African investment firm Zeder Financial Services.   As the R258 million (€22 million) deal will be transacted in South African rand, its euro value and the profit on disposal may vary subject to currency fluctuations between today and when the deal is completed, Total Produce said. The amount is to be paid in cash on April 23, ending a decade-long relationship between the companies.   Since January 2012 Total Produce has been the second-largest shareholder in Capespan Group, when it sold its 50 per cent shareholding in Capespan’s European business to the South African group for a cash consideration of €8.5 million and 6.3 per cent of Capespan Group shares.    The acquisition will see Zeder extend its majority shareholding in South Africa's biggest fruit exporter to some 71 per cent and is in line with the company’s strategy of primarily investing in food, beverage and agricultural companies.   The deal was made after Zeder made an offer for the stake and Total Produce reviewed the strategic long-term benefits of holding the minority stake in Capespan.   '“We have enjoyed an excellent relationship with the Capespan team since 1999, and would like to thank them for their valued performance and contributions over the years,” said Rory Byrne, Total Produce CEO. (18 April)   © 2013 - ESM: European Supermarket Magazine by Kevin Kelly