Sunday Times 5th March 201710 Mar 2017 13:32
Having split from banana importer Fyffes in 2006, Total Produce (TP) is the fruit & veg delivery man gone global, writes Brian Carey. Sales last year reached €3.76bn and cash operating earnings were €94.8m. The company operates in 23 countries. Despite its market lead position in Europe, it only controls 5% of the market.
Much of the growth in 2016 was achieved in America, through the acquisition of a 65% stake in Progressive Produce, a Californian grower, packer & distributor of onions 7 potatoes. TP also hiked its stake in Oppenhimer, its Canadian business from 35% to 65%. Since buying into Oppy in 2011, revenues have doubles and the company recently entered a joint venture with T&G Global, a New Zealand company, to ship fresh produce from the USA to Asia. With net debt of just €48Mm, TP has plenty of scope for further acquisitions.
The McCann family – bolstered by their cash out at Fyffes, and a 11.8% shareholder here – are not short of ambition, and the chairman Carl is an experienced operator. Trading at 14.8 times forecast 2017 earnings, the share trades close to Merrion’s analyst Darren McKinley’s price target of €2. It may require a deal to break through the €2 level.