Fyffes buys second Canadian mushrooms producer

Ireland-based and AIM-listed Fyffes bought 100% of All Seasons’ equity and refinanced its debt, funding the acquisition through its own existing bank debt, saying it expected the acquisition to have a 1% increase in adjusted earnings per share in the 2016 financial year, or 5% pro forma for a full year.

British Columbia-based All Seasons, which operates from three owned facilities and one leased, said its geographic reach would be complementary to its April acquisition of mushroom farm Highline Produce.

The company based its valuation of All Seasons on a 7.5 times multiple of its 2015 earnings before interest, tax, depreciation and amortisation (EBITDA) of CAD$7.8m, having bought Highline for CAD$145m at less than 2.5 times EBITDA.

Fyffes expects its 2016 year end net debt, after this acquisition and normal seasonal working capital outflows in the second half of the year, to be less than 2.75 times EBITDA, if does not make any further acquisitions.

Chairman David McCann said: "It represents an excellent strategic addition to the Highline business which we acquired earlier this year. Together, Highline and All Seasons will be well placed to provide Canadian customers with a consistent supply of the highest quality mushrooms from coast to coast, while continuing to strategically supply US customers with premium and organic mushrooms."

All Seasons chief executive, Frank Moscone is to remain with the business after the acquisition.

Shares in Fyffes were up 1.12% to 136p at 0943 BST.