Total Produce has announced that it has acquired a 65 per cent equity stake in Progressive Produce LLC, a Los Angeles-based grower, packer and distributor of conventional and organic produce to the retail, wholesale and foodservice sectors in the US and Canada.
The purchase consideration will be satisfied by an initial payment on closing while, in addition, a further payment will be made in 2019 contingent on the achievement of future profit targets, the group revealed.
Jim Leimkuhler (president of Progressive Produce), Victor Rodarte (vice-president) and Jack Gyben (vice-president) will remain as equity holders of the business and will continue to be key members of the executive management team.
"We are delighted to become co-owners in Progressive Produce," said Carl McCann, chairman of Total Produce. "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."
Jim Leimkuhler added: “We are very pleased and excited to join with Total Produce. This transaction will further strengthen the business we have developed and grown over many years. We believe this is an excellent long-term combination of skills and expertise that will benefit all stakeholders, including our growers, our suppliers, our people and our customers."
Progressive Produce was founded in 1967 and today is one of California’s premier produce companies with 2015 sales in excess of US$200m, offering 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.