FDBusiness.com

Sumitomo Corporation to Acquire Fyffes For €751.4 Million

 Breaking News
  • Pet Food Producer Achieves 30% OEE Improvement and Brand Security With OAL Connected Wagg Foods, a leading producer of high-quality pet food, has increased its OEE efficiency by 30%, secured its packaging lines from errors and ensured full compliance with retailers’ code of practice with OAL Connected, a modular suite of packaging line software. Known for its laser-focus on quality, nutrition and product development, Wagg Foods prides itself on [...]...
  • Hilton Food Group to Move into UK Fish Processing Hilton Food Group, the UK-based specialist international meat packing business, has agreed to acquire Icelandic Group UK (Seachill), a leading chilled UK fish processor, for cash consideration of £80.8 million. The acquisition will provide Hilton with entry into the processing and supply of fish in the UK. Robert Watson OBE, chief executive of Hilton Food Group. Founded [...]...
  • UK Health Costs of Obesity Soaring Money spent last year on junk food advertising in the UK far outweighs the amount Government is able to spend on healthy eating campaigns, leading to an unbalanced environment pushing us towards unhealthy choices, according to new analysis by the Obesity Health Alliance (OHA). Junk food brands are spending 27.5 times more on advertising their products [...]...
  • The End of EU Sugar and Isoglucose Quotas Will Benefit All Stakeholders EU sugar and isoglucose production quotas ended on 30 September 2017. At its recent conference at the Bibliothèque Solvay in Brussels, Starch Europe called on all stakeholders to embrace the benefits of this historic development. Speaking at the conference, Starch Europe president, Alain Dufait said: “As an industry, we find ourselves in a time of opportunity. [...]...
  • Scotbeef Purchases Blast Freezer From Blue Cube In a move to boost freezer capacity at its modern plant in Glasgow, leading UK fresh meat processing company, Scotbeef has purchased a BFT40 portable blast freezer from Blue Cube Portable Cold Stores – part of The Turner Group – after renting the unit for several years. Scotbeef is one of the largest privately owned fresh [...]...

Sumitomo Corporation to Acquire Fyffes For €751.4 Million

Sumitomo Corporation to Acquire Fyffes For €751.4 Million
December 12
09:56 2016

Sumitomo Corporation, the Japanese global trading company, has made a €751.4 million recommended cash offer for Fyffes, a leading international grower, importer and distributor of fresh produce. With annual turnover in excess of €1.2 billion, Fyffes is headquartered in Dublin, Ireland with operations in Europe, the US, Canada, Central America and South America and Asia. Fyffes activities include the production, procurement, shipping, ripening, distribution and marketing of bananas, pineapples, melons and mushrooms. It markets its produce under a variety of very well-known brands including Fyffes®, Sol®, Turbana®, Hoya®, Highline® and All Seasons® and employs in excess of 17,000 people worldwide.

The Sumitomo offer of €2.23 per share represents a premium of approximately 49% to Fyffes’ closing share price of €1.50 on 8 December 2016.

“Sumitomo Corporation has long admired Fyffes for its outstanding track record and market leading position, and we are delighted that the Fyffes directors have unanimously agreed to recommend our offer to shareholders,” says Hirohiko Imura, representative director, managing executive officer of Sumitomo. “We have significant experience in the produce sector and look forward to working with Fyffes’ executive directors, senior management and employees, customers and other stakeholders to strengthen Fyffes’ already impressive market position through continued investment. We look forward to working with the Fyffes team to further develop the business over the longer-term and to expanding into new markets to better serve customers.”

With 109 locations in 66 countries, Sumitomo Corporation consists of over 800 companies and has a market capitalisation of about US$15 billion with US$8 billion in cash on balance sheet as at its year end on 31 March 2016. Sumitomo has been active in the banana industry since the 1960s and is the market leader in Asia with a fully integrated business model with interests ranging from plantation operations in the Philippines to retail distribution across the Asian region. Currently, the Sumitomo Group imports approximately 30% of the bananas into the Japanese market.

The Sumitomo board believes that Fyffes’ strong position as an international grower, importer and distributor of high quality produce in complementary markets makes it a natural fit with Sumitomo’s organisation.

David McCann, chairman of Fyffes, comments: “We believe this transaction represents a compelling proposition for our shareholders and crystallises the substantial value created in recent years through the various strategic developments and the strong operating performance of our Group. Our employees, customers, suppliers and joint venture partners will benefit from Fyffes being part of an enlarged group with greater scale, reach and resources to broaden and accelerate delivery of Fyffes’ strategic objectives. We look forward to working with the Sumitomo team to develop and enhance our group’s strategy and to build on its long track record of successful growth.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 19, 2017PMA Fresh Summit 2017
  • October 21, 2017Food & Nutrition Conference & Expo 2017
  • October 22, 2017Serbotel
  • October 22, 2017Natexpo
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements