Tuesday 20 March 2018

Fyffes bid to raise €45m following North American purchases

Donal O'Donovan

Donal O'Donovan

Fruit distribution giant Fyffes has announced that it is to raise €45m in a share sale in a bid to boost its financial clout having recently purchased two Canadian companies.

The cash will be available to make further bolt-on acquisitions.

The company said it has enlisted the services of Dublin financial firm Davy to sell 30m shares on its behalf.

In a statement, Fyffes said: “Following the company’s move into the North American mushroom category through the recent accretive acquisitions of Highline and All Seasons, the net proceeds of the placing will maintain the balance sheet strength and liquidity of the company and provide funds for further acquisitions”.

It said this was “part of Fyffes’ strategic objective to grow its business by pursuing attractive acquisition opportunities across each of its four existing and other new product categories”.

Fyffes shares were trading down 0.82pc yesterday at 1.582, although the ISEQ index had shut by the time the company announcement came.

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