Fyffes plc, best known for its bananas, is to invest €27m in its melon business in the US. In recent years, the company has increased its focus on production assets and it currently farms 25,000 acres (40% owned and 60% leased). This latest deal includes about 2,500ha of leased land, 100ha of owned land, four packing stations and related plant and equipment. The total investment of €27m includes seasonal working capital of between €9m and €12m. The deal will increase melon capacity by 25%.
It has also recently purchased a banana farm in Costa Rica for €13.5m which it had operated for the past year under a lease arrangement.