Tuesday 24 October 2017

Chiquita reaffirms commitment to merger as Fyffes report 40pc hike in profits

Fyffes’ boss David McCann
Fyffes’ boss David McCann

Chiquita Brands International has re-affirmed its commitment to a merger with Irish tropical fruit company Fyffes and said it expected the deal to yield cost synergies of $60m.

Fyffes has reported a hike in pre-tax profit to €31m in the first half of 2014, 40pc up on the same period of last year.

The company said group revenue was 3pc higher for the same period at €490.2m.

Earlier in August Chiquita rejected a rival takeover offer form Brazilian juice maker Cutrale and the Safra Group, a banking and real estate conglomerate.

"Chiquita and Fyffes remain committed to the transaction and are continuing to work together to complete the combination as expeditiously as possible," said Ed Lonergan, Chiquita's chief executive officer, in a joint statement issued by the two firms.

The two companies said they had identified an additional $20m of synergies for a total of at least $60m in annualised pre-tax cost synergies by the end of 2016.

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