Ireland-based banana and produce company, Fyffes, has bought its second Canadian mushroom producer within six months.

Less than six months after its entry into the Canadian mushroom sector with the acquisition of Canada’s largest mushroom producer, Highline Produce Ltd. for C$145 million (US$165 million), Fyffes announced it has agreed to acquire 100 percent of the equity in All Seasons Mushrooms Inc. for C$59.1 million (US$46 million).

“Together, Highline and All Seasons will be well placed to provide Canadian customers with a consistent supply of the highest quality mushrooms from coast to coast, while continuing to strategically supply U.S. customers with premium and organic mushrooms,” said Fyffes Chairman David McCann in a company statement.

Based in British Columbia, All Seasons is one of the largest mushroom producers in Western Canada. Operating out of four facilities, of which three are owned by the company and the fourth is leased, the fully integrated company is geographically well situated to be complementary to Highline.

“We are delighted to be joining the Fyffes Group and excited about the potential in working with Highline to provide nationwide coverage to our combined customer base,” said Frank Moscone, current chief executive officer of All Seasons, who will remain in his position after the completion of the acquisition.

Fyffes based its valuation of C$59.1 million for All Seasons on the company’s 2015 earnings before interest, tax, depreciation, and amortization (EBITDA) of C$7.8 million. The estimated book value of All Season’s met assets equals C$39 million on a debt free basis.

Because of the timing of the deal, the All Seasons acquisition is expected to have limited effect on Fyffes 2016 earnings, with an expected adjusted increase of one percent to earnings per share. However, on an annualized basis, the deal is expected to lift Fyffes 2016 target adjusted earnings per share by five percent.

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. Indeed, Markets and Markets estimates that the global mushroom market will grow at a CAGR of 9.5 percent from 2014, reaching a value exceeding $50 billion by 2019.

With such future growth potential, McCann comments on the deal, “We look forward to working with Frank Moscone and his management team to continue to develop the business.”

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Lynda Kiernan