Total Produce Plc Total Produce acquires 65% of US Produce Company (7144N)
February 02 2016 - 2:00AM
UK Regulatory
TIDMTOT
RNS Number : 7144N
Total Produce Plc
02 February 2016
Total Produce plc
Stock Exchange Announcement
Total Produce acquires 65% of leading California Produce
Company
Total Produce plc, the leading fresh produce company, is pleased
to announce that it has acquired a 65% equity stake in Progressive
Produce LLC, headquartered in Los Angeles, California. Progressive
Produce is a grower, packer and distributor of conventional and
organic produce to the retail, wholesale and foodservice sectors in
the U.S. and Canada.
Progressive Produce was founded in 1967 and today is one of
California's premier produce companies with 2015 sales in excess of
US$ 200 million, gross assets of c. US$36m at 31 December 2015 and
employing 214 people.
Progressive Produce offers a wide range of fresh, domestic,
local and imported produce and specialises in the year round supply
of potatoes, onions, asparagus, organics and other fresh fruits and
vegetables. The business serves its customers from four
strategically located distribution facilities in California and
Washington.
The purchase consideration will be satisfied by an initial
payment on closing. In addition, a further payment will be made in
2019 contingent on the achievement of future profit targets. Total
Produce expects the investment to be earnings enhancing from the
date of closing. Long term put and call options are in place for
the remaining 35%.
Jim Leimkuhler (President), Victor Rodarte (Vice President) and
Jack Gyben (Vice President) will remain as equity holders of the
business and will continue to be key members of the executive
management team.
Commenting on the transaction, Carl McCann, Chairman of Total
Produce said:
"We are delighted to become co-owners in Progressive Produce.
This transaction with a leading California produce company further
broadens our US operations and is in line with our strategy. We
look forward to working with the excellent people in Progressive
Produce as it continues to develop its very successful business
expansion in future years."
Commenting on the transaction, Jim Leimkuhler President of
Progressive Produce said:
"We are very pleased and excited to join with Total Produce.
This transaction will further strengthen the business we have
developed and grown over many years. We believe this is an
excellent long-term combination of skills and expertise that will
benefit all stakeholders, including our growers, our suppliers, our
people and our customers."
CREO Capital Advisors, LLC acted as financial advisor and Liner
LLP acted as legal and tax counsel to Progressive and its members.
KPMG acted as financial and tax advisor and Gibson Dunn &
Crutcher LLP acted as legal counsel to Total Produce.
2(nd) February 2016
For further information, please contact:
Brian Bell, Wilson Hartnell PR
Tel: +353-1-669 0030
Ivan Murphy, Davy Corporate Finance
Tel: +353-1-679 6363
This information is provided by RNS
The company news service from the London Stock Exchange
END
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