Irish firm scoops up stake in Canadian company
Total Produce Plc says the transaction will help it further expand into North America’s produce market
Vancouver, B.C. – An Ireland-based firm has acquired a 65-per-cent stake in The Oppenheimer Group.
Total Produce Plc, which made the announcement today, will pay approximately Cdn$40 million or EUR€32 million. The acquisition is all part of an international expansion plan and represents an important entry into the North American market for Total Produce.
Total Produce will acquire a 35 per cent of stake in January 2013 for an initial cash payment of C$15 million, or EUR€11.7 million. An additional consideration for these shares will be made in 2015 if certain profit targets are met.
The remaining 30 per cent will be purchased in 2017 for a price that will be determined based on future profits.
The Oppenheimer Group, also known as Oppy, is a produce marketing and distribution company. With its grower partners, the company brings more than one hundred varieties of fresh produce from more than 25 countries to markets across Canada, the U.S. and elsewhere.
Oppy recorded sales of Cdn$525 million (EUR€410 million) in 2011, realized operating profits on an adjusted basis of CDN$11 million (EUR€8.6 million) before minorities and will have net assets of approximately CDN$20 million (EUR€15.6 million) at completion.
Oppenheimer will continue to be managed by John Anderson, the current chairman, president and CEO, and his existing team. Anderson has entered into a long-term service agreement as part of the transaction, and will continue as the 35 per cent shareholder following the 2017 transaction.