Fruit Distributor Fyffes to be Acquired by Sumitomo
09 Dec 2016 --- Irish fruit distributor Fyffes is to be acquired by Japan’s Sumitomo Corporation for €751 million. The two companies reached agreement following the cash offer by Sumitomo, which will see each Fyffes shareholder receiving €2.23 per ordinary share. The McCann family are the biggest shareholders with their investment vehicle holding over 12 per cent. The offer price is a premium of close to 50 per cent from yesterday’s closing price.
Commenting on the Acquisition, Hirohiko Imura, Representative Director, Managing Executive Officer of Sumitomo, said: “Sumitomo Corporation has long admired Fyffes for its outstanding track record and market leading position, and we are delighted that the Fyffes Directors have unanimously agreed to recommend our offer to shareholders. 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. Sumitomo will provide Fyffes with experience, support and investment to continue to build on the tremendous Fyffes skills and experience and reach greater potential.”
“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.”
Commenting on the Acquisition, David McCann, Chairman of Fyffes said: “We believe this transaction represents a compelling proposition for our shareholders and crystallizes 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. 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.”
