Chiquita and Fyffes identify additional $20m of synergies

Chiquita and Fyffes say they have identified an additional $20 million of synergies for a total of at least $60 million in annualised pre-tax cost savings by the end of 2016.

The $20 million of additional recurring annual synergies is anticipated to come from European and Mediterranean shipping benefits.

Chiquita and Fyffes believe approximately 50 per cent of the $60 million of synergies are achievable in the first year following the close of the merger, with the remaining synergies achieved by the end of the second year.

In March of this year, Fyffes announced it will merge with Chiquita, to create the world’s largest banana company. The merged entity will be called ChiquitaFyffes and will be listed on the New York Stock Exchange but domiciled in Ireland.

Chiquita's CEO Ed Lonergan and Fyffes executive chairman David McCann both said they remain committed to the merger and are continuing to work together to complete the combination as expeditiously as possible.

Fyffes has additionally announced today that it has delivered a strong result in the first half of 2014 with adjusted earnings per share 39.2 per cent higher.

The fruit company has increased its adjusted earnings before interest, taxes and amortisation (EBITA) target for 2014 to between €38 million and €42 million from the range €30 million to €35 million.

Separately, Chiquita has announced a range of efficiency initiatives anticipated to reduce its costs by approximately $14 to $16 million.

Headquartered in Dublin, Fyffes has operations in Europe, the US, Central and South America and has begun operations in Asia.

Chiquita is a leading international marketer and distributor of fresh fruit and salads, and is headquartered in North Carolina.