Fyffes invest $30m in US melon business
Published 22/10/2015 | 02:30
Irish fruit company Fyffes has announced a $30m (€26.4m) investment in its US melon business and has also closed its Irish defined benefit pension scheme.
Fyffes has invested in increasing its capacity in its melon business by spending $18.3m on additional farming assets in Central America.
The $18.3m spend comprises of around 2,500 hectares of leased land, 100 hectares of owned land, four packing stations and related plant and equipment.
Patrick Higgins, an analyst with Goodbody Stockbrokers, said that the investment is a sign of its growth in the melon market.
"It's obviously a positive as it shows how strongly the business has grown over the past seven years since they bought it in 2008. The market share has grown from 23pc then to around 35pc now, so they've performed very strongly in that melon business."
Fyffes' investment will see its capacity in the melon category grow by 25pc which will incur further investment of $10m to $12m in working capital before the end of 2015.