Fyffes shareholders, including the McCann family, will be taking home a nice Christmas box following the buyout offer for the the company’s shares by Japan's Sumitomo Corporation, at a price of €2.23 cash per share, valuing the company at just over €750m.

Sumitomo and Fyffes announced the agreed deal, saying the offer was recommended unanimously by the Fyffes board of directors. Shares in Fyffes soared almost 50% higher in early Dublin trade following the announcement.

The €2.23 per share offer represents a substantial premium on the trading price, which was €1.50 per share at close of business on 8 December. The share traded at an average of €1.47 over the past three months and its all-time high was €1.62 in April 2016.

Fyffes shareholders will also get a final dividend for 2016 of two cents, bringing the total due to shareholders to €2.25 per share. The deal is subject both to Fyffes’ shareholder approval and High Court agreement to the terms. Sumitomo said it already had irrevocable commitments for 27% of the equity.

• Here's a fact sheet issued by the two companies about the proposed combination

In Association with

Fyffes chairman David McCann said: “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.

“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.”

Hirohiko Imura of Sumitomo said: “Sumitomo Corporation has long admired Fyffes for its outstanding track record and market leading position, and we are delighted that the Fyffes directors have unanimously agreed to recommend our offer to shareholders.

“We believe that our offer represents a great reward for Fyffes’ shareholders. We are grateful that the McCann family has provided an irrevocable commitment of support and is entrusting us to continue with them the rich Fyffes heritage. Sumitomo will provide Fyffes with experience, support and investment to continue to build on the tremendous Fyffes skills and experience and reach greater potential.

“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. We look forward to working with the Fyffes team to further develop the business over the longer-term and to expanding into new markets to better serve customers.”

What Fyffes Does

Fyffes annual turnover exceeds €1.2 billion, coming from operations in Europe, the US, Canada, Central America and South America and Asia. Activities include the production, procurement, shipping, ripening, distribution and marketing of bananas, pineapples, melons and mushrooms, and the company employs more than 17,000 staff globally.

Sumitomo intends to retain the existing Fyffes management structure. Sumitomo Corporation is a trader  with 109 locations in 66 countries. The group consists of over 800 companies and more than 65,000 personnel, creating a publicly traded company with a market capitalisation of $15 billion with $8 billion in cash on balance sheet on 31 March last. Sumitomo has been active in the banana industry since the 1960s and is the market leader in Asia.

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