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Sumitomo to buy Irish banana firm Fyffes for $800 million

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Staff Writer | December 9, 2016
Sumitomo Corporation has agreed to buy Irish banana producer Fyffes for 751 million euros ($798 million), a 49 percent premium to Thursday's price.
Acquisition   A compelling proposition for shareholders
Sumitomo, which is offering 2.23 euros in cash per share, said it had secured acceptances from 27 percent of shareholders and expected to have completed the deal by the first quarter of 2017, subject to regulatory approval.

Sumitomo, which is a leading banana producer in Asia, said the deal would provide it with "enhanced scale and portfolio diversity." Its operations in the industry range from plantations in the Philippines to retail distribution across the Asian region.

The board of the Irish firm, whose proposed merger with Chiquita Brands collapsed in 2014, recommended the deal to shareholders.

"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.