Leading European fresh produce company Total Produce has announced to the stock exchange that it has moved to purchase 50 per cent of Netherlands-based Frankort & Koning Beheer Venlo (F&K) and its subsidiaries.
The deal for half of F&K, which is headquartered in Venlo and operates principally in the Netherlands, Germany and Poland, is said to be worth €15m, according to a joint statement from the companies.
An initial cash consideration of €6m will be paid for the shareholding on completion, with an additional consideration not exceeding €9m becoming payable in several stages over a number of years if certain profit targets are hit.
If the transaction passes the normal regulatory clearances, it will continue to be managed by the existing management team, each of whom has entered into a long-term service agreement as part of the transaction.
'We are very pleased to become shareholders in Frankort & Koning and look forward to working with our new partners to develop the business further,' said Carl McCann, chairman of Total Produce. 'This acquisition adds to our presence in key European markets.'
F&K's Theo Koning also welcomed the move, adding: 'The Frankort & Koning team are very happy to be joining with Total Produce. This represents an important step in the development of our group and will help to ensure that Frankort & Koning continues to be in a position to offer the highest level of service to our customers in the future.'
F&K recorded a turnover of €296m for the year ended 31 December 2010, with average profits after tax and minorities standing at €2.7m over the last three financial years. It will have assets of approximately €5.5m at completion.
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