Total Produce has bought 50 per cent of Dutch fresh produce company Frankort & Koning and its subsidiaries for up to €15 million.
The firm has operations in the Netherlands, Germany and Poland and turned over €296m in 2010 and average profits of €2.7m in the past three financial years.
Initially €6m will be paid for the shareholding on completion and an additional €9m will be paid over a number of years if certain targets are met.
The group will continue to be managed by the existing management team, each of whom has entered into a long term service agreement as part of the transaction.
Carl McCann, chairman of Total Produce said: "We are very pleased to become shareholders in Frankort & Koning and look forward to working with our new partners to develop the business further. This acquisition adds to our presence in key European markets".
Theo Koning, of Frankort & Koning said: “The Frankort & Koning team are very happy to be joining with Total Produce. This represents an important step in the development of our group and will help to ensure that Frankort & Koning continues to be in a position to offer the highest level of service to our customers in the future".
Total Produce expects the acquisition to be earnings enhancing from the date of completion. The transaction is subject to regulatory clearance.
