Total buys stake in fruit company
TOTAL Produce's expansion into continental Europe continued yesterday, after the company said it is buying half of a Dutch fruit company.
The firm will spend up to €15m for a 50pc stake in Frankort & Koning Beheer Venlo (F&K), a fruit and vegetable trader, and its subsidiaries.
Under the terms of the deal, which the firm said would be "earnings enhancing" as soon as it was completed, Total will hand over an initial consideration of €6m in cash while additional fees capped at €9m will be paid over the next number of years if profit targets are met.
F&K made a profit after tax of €2.7m last year on revenue of €296m. It operates mainly in Germany, Poland and Holland.
Total chairman Carl McCann said the Dutch acquisition would add to the company's presence in its "key markets" on the continent.
"We are very pleased to become shareholders in Frankort & Koning and look forward to working with our new partners to develop the business further. This acquisition adds to our presence in key European markets," he added.
Total closed up 2.83pc to 38c in Dublin trading yesterday.