Total Produce Plc is joining forces with the Oppenheimer Group. The European fresh produce giant will acquire 65 per cent of the Canadian company Grandview Ventures Ltd, which trades as the Oppenheimer Group, in two stages.
With its headquarters in Vancouver, Canada, the Oppenheimer Group is a leading provider of fresh produce to retail, wholesale and foodservice customers throughout the US and Canada via a network of partner growers around the world.
The Oppenheimer Group recorded sales of C$525 million (£327m) in 2011, realised operating profits on an adjusted basis of C$11m before minorities and will have net assets of approximately C$20m at completion.
Total Produce will acquire a 35 per cent shareholding of the business in January 2013 for an initial cash payment of C$15m. An additional consideration for these shares will be made in 2015 if certain profit targets are met, while a further 30 per cent shareholding will be purchased in 2017 for a price that will be determined based on future profits.
The total consideration payable for the 65 per cent shareholding is estimated not to exceed C$ 40m.
The acquisition continues the international expansion of Total Produce and represents an important entry into the North American market for the group. Total Produce expects the investment to be earnings enhancing from the date of completion.
Oppenheimer will continue to be managed by its chairman, president and CEO, John Anderson, 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.
Carl McCann, chairman of Total Produce said: “We are very pleased to become shareholders in the Oppenheimer Group. 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.”
