LONDON (Alliance News) - Fyffes PLC late Thursday said it has launched an accelerated bookbuild process to place up to 30.0 million shares in order to raise funds so it can further strengthen its balance sheet and pursue more acquisition opportunities.
If all the shares were issued, they will represent around 9.1% of the enlarged issued share capital of the importer and exporter of fresh produce in Europe.
The placing was launched following the acquisition of All Seasons Mushroom Inc last week for a total of CAD59.1 million, or EUR41.0 million. The purchase of the Canadian mushroom business was funded through existing bank debt.
Fyffes also purchased Highline Produce Ltd, Canada's largest mushroom business, in April for CAD145.0 million, or EUR98.0 million.
"Following the company's move into the North American mushroom category through the recent accretive acquisitions of Highline and All Seasons, the net proceeds of the placing will maintain the balance sheet strength and liquidity of the company and provide funds for further acquisitions as part of Fyffes strategic objective to grow its business by pursuing attractive acquisition opportunities across each of its four existing and other new product categories," said Fyffes.
In the absence of further investment activity, Fyffes would expect its 2016 year end net debt, after the acquisition of All Seasons and normal seasonal working capital outflows in the second half of the year, to be less than 2.75 times earnings before interest, tax, depreciation and amortisation, it said.
Including the net proceeds of the placing, Fyffes expects its 2016 year-end net debt to be less than 2.0 times Ebitda, on the same basis.
"Fyffes continues to have a strong pipeline of further attractive acquisition and investment opportunities across existing and new product categories which could deliver further accretive growth and returns for shareholders if completed," said Fyffes.
Davy is acting as sole global co-ordinator and bookrunner in respect of the placing.
Fyffes shares closed up 0.5% to 136.93 pence per share in London on Thursday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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