Total Produce plc is to buy 65% of Grandview Ventures Limited which trades as the Oppenheimer Group, in two stages for a total price of up to €32m.Headquartered in Vancouver, Canada, the Oppenheimer Group/Oppy provides fresh fruit and vegetable produce to its retail, wholesale and foodservice customers throughout the United States and Canada. The group has a network of growers around the world and operates from a number of locations throughout North America.
It had sales of CDN$525m (€410m) in 2011, had operating profits on an adjusted basis of CDN$11m (€8.6m) before minorities and will have net assets of approximately CDN$20m (€15.6m) at completion.
In January 2013, Total Produce will acquire a 35pc shareholding for an initial cash payment of CDN$15m (€11.7m). An additional consideration for these shares will be made in 2015 if certain profit targets are met. A further 30pc shareholding will be purchased in 2017 for a price that will be determined based on future profits.
The total consideration payable for the 65pc shareholding is estimated not to exceed CDN$40m (€32m).
Total Produce said the acquisition continues its international expansion and represents an important entry into the North American market. The company expects the investment to be earnings enhancing from the date of completion.
Oppenheimer will continue to be managed by its current 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 35pc shareholder following the 2017 transaction.
The transaction was originated by Davy Corporate Finance which provided advice to Total Produce. Ernst & Young Orenda Corporate Finance Inc is acting as financial advisor to 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,” said Carl McCann, chairman of Total Produce. “We look forward to working with John Anderson and his team who have an excellent reputation in this industry."
"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,” said Anderson. “We are looking forward to the opportunities ahead as we leverage the synergies between our two organisations."
