Total Produce, the Irish fresh fruit and vegetable supplier which was spun out of Fyffes, has acquired a 50% stake in California-based fresh produce company The Fresh Connection for an undisclosed sum.

Fresh Connection is one of the largest fruit and vegetable exporters in the US with sales to more than 35 markets in Asia, the Middle East, South America and Europe. The company generated sales of $165m (€142m) last year.

“This transaction further broadens our US presence and provides us with strategic access to other key markets,” said Total Produce chair Carl McCann. Davy estimate the acquisition will add about 3% to its forecast earnings (EBITA) for Total Produce in 2018.

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The acquisition of a 50% stake in The Fresh Connection is the latest move by Total Produce as it continues to expand in North America. In March this year, Total Produce paid a further €28.4m to increase its stake in the Canada-based Oppenheimer Group from 35% to 65%.

Last year, Total Produce acquired a 65% stake in Los Angeles headquartered Progressive Produce for a sum close to €40m.