Japanese firm ripe for €751m deal to acquire Dublin-based fruit firm Fyffes. Sumitomo Corporation has made the a-peeling offer to the banana distributor. The Asian firm is acquiring the Dublin-headquartered banana giant in a massive €751.4m cash deal, Fyffes has said. Swordus Ireland Holding Limited, a subsidiary of Sumitomo, will snap up Fyffes – which is best known for its bananas but also operates in the pineapple, mushroom, and melons markets. With the new agreement, Fyffes shareholders will be entitled to get €2.23 for each ordinary share. The acquisition represents a premium of around 37pc of Fyffes’ all-time high share price of €1.62, which happened on April 22 of this year.

 

Fyffes chairman David McCann said the deal is a “compelling proposition”. McCann said: “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. "We look forward to working with the Sumitomo team to develop and enhance our Group’s strategy and to build on its long track record of successful growth.”

 

Sumitomo managing executive officer Hirohiko Imura said: “We believe that our offer represents a great reward for Fyffes’ shareholders. We are grateful that the McCann family has provided an irrevocable commitment of support and is entrusting us to continue with them the rich Fyffes heritage.” The Japanese business said it has plans to expand Fyffes into new markets and add new produce offerings to the Fyffes’ fruit bowl. The profitable deal remains subject to approval from Fyffes shareholders and High Court sanction.

 

The Irish Sun

By ANGELA MULLIN,

9th December 2016