Fyffes acquires Canada’s largest mushroom business

Business, Finance | Fri 1 Apr | Author – Business & Finance

Fyffes has announced the purchase of Canadian mushroom producer Highline Produce in a deal worth €98m.

Fyffes has acquired 100% of the equity in Highline and is funding this acquisition through new and existing bank debt.

Highline is a fully integrated mushroom business operating from five facilities, of which four are owned and one is leased. It is the largest operator in the mushroom category in Canada, with retail customers accounting for 75% of sales, and wholesale, food service and canning customers accounting for the balance. US customers represent 35% of current annual revenues.

Highline’s experienced management team, led by CEO Glenn Martin, will continue to run the business.

The estimated book value of Highline’s net assets amounts to $52m on a debt-free basis. This transaction will be immediately accretive for Fyffes, resulting in a 13% increase in its current 2016 target adjusted EPS range on an annualised basis.

Commenting on this transaction, Fyffes chairman David McCann said: “Highline is a very fine business with a strong position in an important product category. We look forward to working with Glenn Martin and his management team to continue to develop the business. This transaction fits perfectly with Fyffes strategic objective of adding an additional product to its existing three through the acquisition of an established, successful, integrated operator in a category with significant scale.”

Highline CEO Glenn Martin added: “We are excited about this transaction and delighted to be joining Fyffes, given its long history and successful track record of growth. We look forward to working with Fyffes management as we continue to grow our own business into the future.”