Total Produce has acquired a 65% equity stake in
Progressive Produce, which is a grower, packer
and distributor of conventional and organic produce
to the retail, wholesale and foodservice sectors
in the US and Canada.
Progressive Produce was founded in 1967 and today is one of California's premier produce companies with 2015 sales in excess of US$ 200 million, gross assets of c. US$36m at 31 December 2015 and employing 214 people.
Progressive Produce offers a wide range of fresh, domestic, local and imported produce and specialises in the year round supply of potatoes, onions, asparagus, organics and other fresh fruits and vegetables. The business serves its customers from four strategically located distribution facilities in California and Washington.
The purchase consideration will be satisfied by an initial payment on closing. In addition, a further payment will be made in 2019 contingent on the achievement of future profit targets. Total Produce expects the investment to be earnings enhancing from the date of closing. Long term options have been put in place for the remaining 35%.
Source: stockmarketwire.com
