Fyffes sold to Sumitomo in $798 million deal
Fyffes sold to Sumitomo in $798 million deal
Dublin-based Fyffes, an Irish fruit distributor which ships, ripens and distributes bananas, melons, pineapples and mushrooms, has been sold to Sumitomo, a Japanese company which first entered the market in the 1960s and supplies about one in three bananas sold in Japan.
“We look forward to working with the Fyffes team to further develop the business over the long-term and to expanding into new markets,” Hirohiko Imura, managing executive officer of Sumitomo, told BBC News.
The deal brings together the two largest banana distributors in Asia and Europe.
The McCann family has agreed to sell its 11.79 percent stake in Fyffes, worth nearly $93 million, and the Zucker family is also in line for a similar payout for its 11.83 percent stake. The two families, as well as other shareholders, will receive $2.37 per share in cash as well as a final dividend of two cents a share. Fyffes has recommended the deal to investors and 27 percent have already backed it.
“Our employees, customers, suppliers and joint venture partners will benefits from Fyffes being part of an enlarged group with greater scale, reach and resources to broaden and accelerate delivery of Fyffes’ strategic objectives,” David McMann, executive chairman of Fyffes told The Guardian.
Sumitomo’s takeover of Fyffes comes two years after the Irish fruit distributor and U.S. rival Chiquita abandoned plans for a merger, which would have created the world’s largest banana company.