LONDON (Alliance News) - Irish banana and fresh produce company Fyffes PLC on Friday said it has purchased Canadian mushroom producer Highline Produce Ltd for CAD145.0 million.
Fyffes said the deal is to be funded through new and existing bank debt, and will result in a 13% increase in its current 2016 target adjusted earnings per share range on an annualised basis.
Fyffes said the estimated book value of Highline's net assets amounts to CAD52.0 million on a debt-free basis, with Fyffes's CAD145.0 million valuation based on an 8.1 multiple of Highline's estimated current annualised pro-forma earnings before interest, tax, depreciation and amortisaiton of CAD18.0 million.
Fyffes said Chief Executive Glenn Martin will continue to run the Leamington, Ontario-headquartered Highline business after integration.
"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," said Fyffes Chairman David McCann.
Shares in Fyffes were untraded on Friday, having last traded at 108.58 pence.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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