Fyffes is to acquire 70 per cent of Hortim International, a food distributor in the Czech Republic for the initial price of €10.25 million.
If certain growth targets are achieved the deal may be worth €22.25 million. The transaction is expected to be completed within the next month subject to the satisfaction of certain conditions precedent.
Hortim employs more than 600 people and operates from four major locations in the Czech Republic and two in the Slovak Republic.
Hortim reported turnover of €100 million last year and profits of €1.9 million.