Total Produce to Acquire 65% of Leading North American Group
Total Produce, Europe’s leading fresh produce company, has agreed to acquire 65% of Grandview Ventures, which trades as the Oppenheimer Group, in two stages. Headquartered in Vancouver, Canada, the Oppenheimer Group is a leading provider of fresh produce to its strong base of retail, wholesale and food service customers throughout the United States and Canada. The group partners with a trusted network of growers around the world and operates from a network of locations throughout North Americato provide premium quality, fresh fruit and vegetable products on a year round basis.
The Oppenheimer Group recorded sales of C$525 million (Eur410 million) in 2011, realised operating profits on an adjusted basis of C$11 million (Eur8.6 million) before minorities and will have net assets of approximately C$20 million (Eur15.6 million) at completion.
Total Produce will acquire a 35% shareholding in January 2013 for an initial cash payment of C$15 million (Eur11.7 million). An additional consideration for these shares will be made in 2015 if certain profit targets are met. A further 30% shareholding will be purchased in 2017 for a price which will be determined based on future profits.
The total consideration payable for the 65% shareholding is estimated not to exceed C$40 million (Eur32 million).
The acquisition continues the international expansion of Total Produce and represents an important entry into the North American market. Total Produce expects the investment to be earnings enhancing from the date of completion.
Oppenheimer will continue to be managed by the current Chairman, President and CEO, John Anderson, and his existing team. John Anderson has entered into a long term service agreement as part of the transaction, and will continue as the 35% shareholder following the 2017 transaction.
