April 3, 2016

Irish banana and produce company, Fyffes, has acquired Canada’s largest mushroom producer, Highline Produce Ltd., for C$145 million (US$165 million).

“This transaction fits perfectly with Fyffes strategic objective of adding an additional product to its existing three through the acquisition of an established, successful, integrated operator in a category with significant scale,” noted Fyffes Chairman David McCann in a company statement.

Founded in 1961, Highline has grown to become the largest producer of organic mushrooms in the world, as well as the largest mushroom producer in Canada. With five owned and leased facilities across Ontario and Quebec, Highline sells approximately 58 million pounds of mushrooms per year with U.S. customers representing about 35% of current annual revenues. Using developed cropping and production methods, Highline is able to grow all white, mini bella, and portabella mushrooms without the use of pesticides or fungicides that are commonly used in traditional production. After the completion of the deal, Highline’s executive team, which is led by CEO Glenn Martin will continue to steer the business.

“Highline is a very fine business with a strong position in an important product category,” said McCann. “We look forward to working with Glenn Martin and his management team to continue to develop the business.”

Fyffes has been in business for more than 125 years and is a producer, shipper, and marketer of bananas, melons, and pineapples across Europe, the U.S., and Central and South America. And although Highline is not in the tropical fruit industry, a company spokesperson told Fresh Plaza, it is “a similar business,” referring to the mushroom supply chain.

“We couldn’t be more excited about this transaction and joining Fyffes, given its long history and successful track record of growth, said Highline CEO, Glenn Martin in a company press release. “We already operate some of the most state-of-the-art mushroom facilities in North America, and this arrangement will give us access to a global market leader in fresh produce.”

The global mushroom market is set to continue growth through 2018, according to a recent report from Transparency Market Research (TMR) that indicates  demand factors, which include consumer demand for value-added products and increasing health consciousness, and increasingly efficient production processes will drive market growth.