Fyffes on the look out for more acquisitions after €100m Highline Produce buy
Irish fresh fruit firm Fyffes is open to adding further acquisitions to the firm following a near €100m spend on a US mushroom business.
The company splashed out €97.7m at the start of the month on Highline Produce, the fourth biggest mushroom firm in North America.
Fyffes chairman David McCann said the company “always has an open mind” in relation to acquisitions.
Mr McCann was speaking at the firm’s annual general meeting in Ballsbridge on Friday where the company outlined its plans to increase its earnings before interest, tax, depreciation and amortisation (EBITDA) for 2016.
Fyffes is increasing its EBITDA target from between €54m and €60m to €63m to €69m following the mushroom acquisition.
As a result the company has also increased its earnings per share targets (EPS) up to between 12.8c and 14.5c.
Highline Produce will account for around a sixth of the company’s EBITDA for this year and Mr McCann says that proportion will increase naturally next year when it is part of the firm for the full 12 months.
Fyffes said in a statement that it is confident about its future prospects.
“Overall, the Group’s existing business has performed in line with expectations in the year to date. The increase in the target ranges below includes the expected impact of the recent purchase of Canada’s largest mushroom company, Highline Produce Limited, for the nine month period post acquisition,” Fyffes said.