Tuesday 20 March 2018

Fyffes eyes further acquisitions

Traders react while working on the floor of the New York Stock Exchange (NYSE) in New York City
Traders react while working on the floor of the New York Stock Exchange (NYSE) in New York City

Sean Duffy

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

The company have 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. Overall in Dublin yesterday, the ISEQ was up 0.45pc at 6128.81, a rise of 27.5 points. Pensions group IFG lost more than 4pc as investors reacted to the resignation of ceo Paul McNamara.

Shares in the country's largest hotel group, Dalata, regained ground lost earlier in the week, gaining 3.8pc in trading.

Elsewhere in Europe, London's FTSE 100 index rose by 0.8pc, while the German Dax was up 0.4pc. The French CAC was down 0.05pc.

The Bank of England said yesterday it was still likely to cut rates to just above zero later this year, even though the initial Brexit hit to Britain's economy was proving less severe than it had predicted last month. The BoE's rate-setters voted unanimously to keep the Bank Rate at 0.25pc after cutting it in August for the first time since 2009.

Irish Independent

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