Japanese company set to buy Fyffes for €751M
Ireland-headquartered tropical fruit distributor Fyffes has reached an agreement to be bought by Japan's Sumitomo Corporation, in a deal worth approximately €751 million (US$798 million). 
Sumitomo is a major global trading company that has been active in the banana industry since the 1960s.
It is a market leader in Asia with a fully integrated business model and interests ranging from plantation operations in the Philippines to retail distribution across the continent.
Currently, the organization imports around 30% of the bananas into the Japanese market.
It said it would pay €2.23 per share of Fyffes, representing a premium of 49% on the company's closing price on Dec. 8.
"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," Fyffes chairman David McCann said.
"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."
Meanwhile, Sumitomo managing executive officer Hirohiko Imura said the company had 'long admired Fyffes for its 'outstanding track record and market leading position', adding it was 'delighted' that Fyffes directors had unanimously agreed to recommend the offer to shareholders.
"Sumitomo will provide Fyffes with experience, support and investment to continue to build on the tremendous Fyffes skills and experience and reach greater potential," he said.
"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."
Photo: www.shutterstock.com
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