Total Produce increases its Capespan Shareholding

Total Produce plc

Stock Exchange Announcement  

Total Produce increases its Capespan Shareholding

to 25% in €13m Transaction

Total Produce plc is pleased to announce that it has sold its 50% shareholding in the European distribution business Capespan International Holdings Ltd ("Capespan Europe"), to Capespan Group Ltd in South Africa ("Capespan South Africa"), in exchange for an additional 20 million shares in Capespan South Africa and €8.5m in cash.

This will result in Total Produce increasing its shareholding in Capespan South Africa to 25% and being its second largest shareholder. The transaction is subject to regulatory approval, and the issue of the shares is subject to the approval of Capespan South Africa's shareholders.

Capespan South Africa already owned 50% of Capespan Europe. The full merger of Capespan Europe with Capespan South Africa will result in the alignment of the offering to provide the best possible service to our customers.

Capespan Europe reported an operating profit of GBP£2.0m pre-exceptional costs in 2010 and had net assets before goodwill and intangibles of GBP£5.75m. The transaction will increase Total Produce's cash balance by €8.5m, for use in the continued expansion of the group.

Commenting on the transaction, Carl McCann, Chairman of Total Produce said:

"We are pleased to have further increased our shareholding in Capespan, the premier South African Produce company with a global reach."

23 December 2011

For further information, please contact:Brian Bell, Wilson Hartnell PRTel: +353-1-669 0030