FFY.L Regulatory News (FFY)

Stock Exchange Announcement

Fyffes acquires second Canadian mushroom business for CAD$59.1m (€41m)

Having entered the Canadian mushroom industry in April 2016 through the acquisition of Highline Produce Limited, Fyffes plc is pleased to announce the purchase of a second large Canadian mushroom business, All Seasons Mushrooms Inc. ('All Seasons'). Fyffes has paid CAD$59.1m (€41m) to acquire 100% of the equity in All Seasons and refinance its debt. Fyffes is funding this acquisition through existing bank debt.

All Seasons, which is based in British Columbia, is one of the largest mushroom producers in Western Canada. It is a fully integrated producer operating from four facilities, of which three are owned and one is leased. Its geographic reach will be highly complementary to that of Highline Produce. The current CEO of All Seasons, Frank Moscone, will remain in the business post acquisition.

Fyffes has based its CAD$59.1m valuation of All Seasons on a 7.5 times multiple of its 2015 reported EBITDA of CAD$7.8m. In the absence of further investment activity, Fyffes would expect its 2016 year end net debt, after this acquisition and normal seasonal working capital outflows in the second half of the year, to be less than 2.75 times EBITDA, based on its current target EBITDA range, adjusted for the annualised earnings of Highline and All Seasons. The estimated book value of All Season's net assets amounts to CAD$39m on a debt free basis. This transaction is expected to be immediately accretive for Fyffes. Given the timing of this transaction, the impact on Fyffes 2016 earnings is expected to be limited to a c.1% increase in Adjusted EPS, based on the Group's current target earnings ranges. On an annualised basis, the All Seasons transaction would increase Fyffes current 2016 target Adjusted EPS range by c.5%.

Commenting on this transaction, Fyffes Chairman David McCann said:

"We are very pleased to have acquired All Seasons. It represents an excellent strategic addition to the Highline business which we acquired earlier this year. Together, Highline and All Seasons will be well placed to provide Canadian customers with a consistent supply of the highest quality mushrooms from coast to coast, while continuing to strategically supply US customers with premium and organic mushrooms. We look forward to working with Frank Moscone and his management team to continue to develop the business."

All Seasons CEO Frank Moscone said:

"We are delighted to be joining the Fyffes Group and excited about the potential in working with Highline to provide nationwide coverage to our combined customer base."

Fyffes plc

8 September 2016

For further information, please contact:

Brian Bell, Wilson Hartnell PR - Tel: +353 1 669 0030

Ivan Murphy, Davy Corporate Finance - Tel: +353 1 679 6363