Sumitomo to buy Irish food distributor Fyffes for €751.4m

(ShareCast News) - Fyffes has agreed to be bought by Japan's Sumitomo in a €751.4m deal.Under the terms of the acquisition, the Irish food distributor - known for its banana business - will receive €2.23 in cash for each of its shares, which is a premium of around 49% to the closing price on Thursday.Fyffes shareholders will also be paid a final dividend in respect of calendar year 2016 of €0.02 per share in cash, bringing the total amount to €2.25 per share.Chairman David McCann said: "We believe this transaction represents a compelling proposition for our shareholders and crystallises the substantial value created in recent years through the various strategic developments and the strong operating performance of our group."Our employees, customers, suppliers and joint venture partners will benefit from Fyffes being part of an enlarged group with greater scale, reach and resources to broaden and accelerate delivery of Fyffes' strategic objectives. We look forward to working with the Sumitomo team to develop and enhance our group's strategy and to build on its long track record of successful growth."Sumitomo said it has secured acceptances from 27% over its shareholders and expects the deal to complete by the first quarter of next year.