Total Produce Plc Total Produce expands its US business (2899Y)
March 02 2017 - 2:01AM
UK Regulatory
TIDMTOT
RNS Number : 2899Y
Total Produce Plc
02 March 2017
Stock Exchange Announcement
Total Produce increases shareholding in Oppy
and Oppy enters agreements with T&G Global
Total Produce, the leading fresh produce company is pleased to
announce that it has completed the purchase of a further 30% of
Grandview Ventures Limited (GVL) which trades under the names of
the Oppenheimer Group and Oppy for a consideration of EUR28.4
million (CAD$39.5 million). In addition to the initial 35% acquired
in 2013, this brings Total Produce's shareholding of GVL to 65%
after a total investment of EUR43.4 million (CAD$60.6 million).
We are also pleased to announce that Oppy has entered
strategically-important agreements with New Zealand based T&G
Global Limited which will enable both to enhance their market
positions as co-shareholders in two US produce businesses.
Headquartered in Vancouver, Canada, and with sales of almost
CAD$1 billion (EUR720 million), Oppy is a leading provider of fresh
produce to its strong base of retail, wholesale and foodservice
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 America to
provide premium quality fresh fruit and vegetables on a year round
basis.
Under the continuing management of John Anderson (CEO, President
and 35% shareholder) and his team, Oppy has grown significantly
since the initial investment by Total Produce. Sales have almost
doubled from the CAD$525m recorded in 2011.
Headquartered in Auckland, and with offices in 12 countries
around the world, T&G Global is New Zealand's largest grower,
packer, distributor, trader, marketer and exporter of fresh produce
by volume. The group owns extensive intellectual property and is
particularly known for its premium apples and pears which are sold
globally under its owned brands which include "Jazz", "Envy", and
"Pacific Rose". T&G Global's majority shareholder is BayWa AG
which is listed on the Frankfurt and Munich stock exchanges.
Under the agreement, T&G Global will increase its
shareholding in Oppy's largest subsidiary, the US focussed marketer
David Oppenheimer & Company I, L.L.C. ("DOC") to 39.4% from the
15% it has held since 1997. Thereafter its shareholding will match
the effective share of DOC held by Total Produce. Separately Oppy
will acquire from T&G Global a 50% share of T&G Global's
California headquartered US export business, T&G Global North
America known in the market as Delica North America, Inc. ("Delica
NAM"). With 2016 sales of US$66 million, Delica NAM is focussed on
exporting a wide range of fresh produce from the US predominantly
to the important Chinese and south east Asian markets.
T&G Global's branded apples and pears, in particular "Jazz"
and "Envy", are key products for both DOC and Delica NAM and have
played an important role in the rapid growth of Oppy. As part of
the agreements reached, Oppy will remain the primary long-term
distributor of these products in North America, and Delica NAM for
exports from North America.
Commenting on the transaction,
Carl McCann, Chairman of Total Produce said:
"We are very pleased to increase our shareholding in Oppy and
for Oppy and Total Produce to strengthen ties with T&G Global.
We look forward to continuing to work with John Anderson in Oppy,
Alastair Hulbert in T&G and their teams in the coming years to
further build on the success of Oppy and Delica North America."
Alastair Hulbert, CEO of T&G Global said:
"T&G Global has enjoyed a strong and successful partnership
with Oppy and its management team for many years and looks forward
to working closer with the team and with Total Produce plc."
"Our increased shareholding recognises the growing importance we
place on the US market for our Jazz and Envy PVR apple brands and
the vital role Oppy is playing in this success. Aligning our US
export business T&G Global North America with the Oppy Group
will enable T&G Global to present grower suppliers to both US
and international customers and further strengthen its ability to
service and support the needs of these US domestic and
international customers."
John Anderson, CEO and President of Oppy said:
"We are pleased to integrate even more deeply with Total Produce
with whom we have experienced a vibrant and productive relationship
while operating autonomously since our partnership began in
2013".
"T&G's increased shareholding in Oppy facilitates growth in
our apple category, as well as others, and gives us the opportunity
to expand our export offerings", said Anderson, who will continue
to lead Oppy in his current role. "The combination of the three
organizations will extend the benefits of shared expertise,
products, and supply chain to our global customers. It will
continue to be 'business as usual' for customers and growers
interacting with Oppy, we'll just have more to offer than ever
before."
2 March 2017
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
ACQLLFETVFILIID
(END) Dow Jones Newswires
March 02, 2017 02:01 ET (07:01 GMT)
Total Produce (LSE:TOT)
Historical Stock Chart
From Jul 2024 to Jul 2024
Total Produce (LSE:TOT)
Historical Stock Chart
From Jul 2023 to Jul 2024