Irish based multinational Total Produce PLC has acquired a 65% equity stake in Los Angeles-based Progressive Produce LLC.
Progressive Produce, a grower-packer-distributor founded in 1967, had 2015 sales of more than $200 million and employs 214 people, according to a news release. The release said gross assets of the California company were $36 million as of Dec. 31 last year, The company operates four distribution facilities in California and Washington.
“We are delighted to become co-owners in Progressive Produce,” Carl McCann, chairman of Total Produce, said in the release. “This transaction with a leading California produce company further broadens our U.S. operations and is in line with our strategy.”
The purchase consideration will be satisfied by an initial payment on closing, according to the release. Further payment will be made in 2019 contingent on achieving profit goals.
Progressive Produce president Jim Leimkuhler — and vice presidents Victor Rodarte and Jack Gyben — will remain as equity holders of the business and will be members of the executive management team, according to the release.
“We are very pleased and excited to join with Total Produce,” Leimkuhler said in the release. ”We believe this is an excellent long-term combination of skills and expertise that will benefit all stakeholders, including our growers, our suppliers, our people and our customers.”
Total Produce operates out of 100 facilities across 20 countries, according to the company website, including The Oppenheimer Group in North America.