Fyffes gets into the Canadian mushroom business

(ShareCast News) - Fyffes expanded into the Canadian mushroom business on Friday, purchasing 100% of the equity of the country's largest producer.The AIM-traded banana company said it paid CAD 145m (£77.9m) for Highline Produce, funded through new and existing bank debt.Fyffes' board described Highline as a fully-integrated mushroom business operating from five facilities - four owned, and one leased.It remained the largest mushroom operator in Canada, with retail customers accounting for 75% of sales, and wholesale, food service and canning customers making up the balance.Customers in the US represented 35% of current account revenues, Fyffe's board confirmed. Highline's current management team, including CEO Glenn Martin, would continue to run the business."Highline is a very fine business with a strong position in an important product category," said Fyffes chairman David McCann."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," he added.Highline CEO Glenn Martin said he was excited about the transaction, and delighted to be joining Fyffes, given its history and track record of growth."We look forward to working with Fyffes management as we continue to grow our own business into the future," he said.