Total Produce buys 65% stake in US-based Progressive Produce

Fresh produce company Total Produce has acquired a 65% equity stake in Los Angeles-based Progressive Produce for an undisclosed sum.

Progressive – a grower, packer and distributor of conventional and organic produce to the retail, wholesale and food service sectors in the US and Canada – had sales in excess of $200m in 2015 and gross assets of around $36m at 31 December.

Total Produce, which expects the investment to be earnings-enhancing from the date of closing, said 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.

Chairman Carl McCann said: “This transaction with a leading California produce company further broadens our US operations and is in line with our strategy.

“We look forward to working with the excellent people in Progressive Produce as it continues to develop its very successful business expansion in future years."

At 1106 GMT, Total Produce shares were 2.9% higher at 107p.