Fyffes has entered into an agreement to buy the Everfresh group of companies in Sweden.
Fyffes will acquire 60% of Everfresh for an initial consideration of €28.7m, with the balance of 40% of be acquired in 2007.
In a statement, Fyffes said the total amount paid for Everfresh will be 6.25 times the average net profit, before tax and goodwill, achieved by the Swedish company during the three years to the end of 2006, subject to a maximum of €77.6m. The minimum consideration will be €28.7m, the company added.
All of the deal will be satisfied with cash. The purchase of the first 60% shareholding is expected to be completed within two months, subject to certain conditions.
Headquartered in Helsingborg in Sweden, Everfresh employs over 315 people and operates from four locations in Sweden and one in Finland. It had a turnover of €300m in 2003 while its pre-tax profits came to €4.4m.
Fyffes said it expects the acquisition to be earnings enhancing from the date of completion.
'The acquisition of Everfresh represents an important new investment for Fyffes,' commented Carl McCann, Fyffes' Chairman. 'This transaction offers us a significant growth opportunity and represents a continuation of our development strategy of acquiring strong businesses in our sector,' he added.
