Sumitomo has entered into an agreement to acquire Irish fruit grower Fyffes for €751m to increase its fruit imports in Japan.
The global trading company which imports about 30% of bananas to Japan has offered to buy each of the Fyffes share for €2.23 in cash.
According to Sumitomo, the Dublin headquartered Fyffes' position as an international grower, importer and distributor of produce makes it a natural choice for acquisition. Fyffes’ produce includes bananas, melons, pineapples and mushrooms.
Sumitomo representative director, managing executive officer Hirohiko Imura said that the company will offer the Irish fruit grower with its know-how besides providing support and investment to consolidate on its skills and experience to grow further.
Imura added: “We have significant experience in the produce sector and look forward to working with Fyffes' executive directors, senior management and employees, customers and other stakeholders to strengthen Fyffes' already impressive market position through continued investment.
“We look forward to working with the Fyffes team to further develop the business over the longer-term and to expanding into new markets to better serve customers."
Through the acquisition by Sumitomo, Fyffes is expected to expand and grow its different produce offerings, move into newer geographies besides accelerating its strategy execution.
Fyffes chairman David McCann said: "We believe this transaction represents a compelling proposition for our shareholders and crystallises the substantial value created in recent years through the various strategic developments and the strong operating performance of our Group.
“Our employees, customers, suppliers and joint venture partners will benefit from Fyffes being part of an enlarged group with greater scale, reach and resources to broaden and accelerate delivery of Fyffes' strategic objectives.”
In September, the Irish fruit and fresh produce company purchased All Seasons Mushrooms for C$59.1m ($45.7m) in Canada.
