Multinational fresh produce company Total Produce has entered the North American market and continued its recent international expansion by agreeing to acquire a 65 per cent shareholding in Grandview Ventures, known more commonly as Oppenheimer Group, a major supplier of fresh fruit and vegetables in the region.
Commenting on the transaction, Total Produce chairman Carl McCann said the acquisition would be of huge benefit to the company and contribute to its profitability immediately.
"We are very pleased to become shareholders in the Oppenheimer Group," he said. "This transaction offers us a significant growth opportunity and represents a continuation of the group's development strategy of acquiring strong businesses in our sector. We look forward to working with John Anderson and his team who have an excellent reputation in this industry."
Oppenheimer, which recently rebranded itself as Oppy, will continue to be managed by the current chairman, president and chief executive, John Anderson, alongside his existing team.
Total Produce confirmed that Anderson had entered into a long-term service agreement as part of the transaction and will continue as the 35 per cent shareholder once the transaction has been fully completed.
"We are delighted to enter this strategic alliance with Total Produce, a partner that strengthens our ability to grow strategically while benefitting our growers and customers as we continue to operate autonomously," Anderson said. "We are looking forward to the opportunities ahead as we leverage the synergies between our two organisations."
With its headquarters in Vancouver, Canada, Oppenheimer supplies locally sourced and imported produce to retail, wholesale and foodservice customers throughout the US and Canada.
In 2011, the group posted an operating profit of C$11m (€8.6m) on sales of C$525m (€410m), and will have net assets of approximately C$20m (€15.6m) once the deal has gone through.
Total Produce is set to acquire the 65 per cent stake in Oppenheimer in two stages, taking a 35 per cent share in the company in January for an initial cash payment of C$15m (€11.7m) and then making an additional payment for those shares in 2015 provided certain profit targets are met.
A further 30 per cent shareholding will be purchased in 2017 for a price to be determined based on future profits.
However, the total amount payable for the 65 per cent shareholding is estimated to be no greater than C$40m (€32m).
