Fyffes is paying ?10.25 million with the potential for further payments in each of the next four years if certain stipulated growth targets are met to a maximum total 'earn-out' payment of ?12million. The deal is likely to be finalised over the next month and will be paid in cash.

'The acquisition of Hortim is a significant investment for Fyffes,' said vice-chairman Carl McCann. 'The Czech Republic is expected to join the EU in 2004. This transaction offers significant growth opportunities, as well as a continuation of our development strategy of acquiring major businesses in our sector. We are pleased to become shareholders in Hortim and look forward to working together with Zdenek Hort and his team.' Hort will remain a significant shareholder in the company he founded with Marius de Groot nine years ago and will continue to act as its general manager, Fyffes confirmed. The company reported ?00m turnover in 2001with net assets of ?9.9m. It employs more than 600 people at four Czech and two Slovak sites and has a strong market position supplying both multiples and wholesalers.

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