Davy Research

Total Produce

Acquisition of 50% stake in The Fresh Connection, LLC
Foods
Total Produce

DAVY VIEW

Total Produce has announced its second North American acquisition in 2017 (third deal including its increased stake in Oppenheimer) with the acquisition of a 50% stake in The Fresh Connection. The deal provides further momentum to the build-out of the group’s growth platform in the buoyant North American fresh produce market and adds c.US$165m of sales to the revenue base (consolidated). We estimate that the acquisition will add c.3% to our group FY2018 EBITA forecasts and will be both earnings and value accretive.

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • Total Produce

    Closing Price: 230c

  • RATING 14/05/10

  • PREVIOUS RATING 30/06/09

    Neutral

Analyst(S)

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