Total Produce, the Irish based fruit and vegetable distributor, has reached an agreement to purchase 45% of US headquartered group Dole Food Company for $300m.

Total Produce also has an option to buy a further 6%, which would make it the majority shareholder. However, the group says it currently has no intention to exercise the option. Two years from now it also has an option to buy the outstanding 49% at that stage for between $250m and $450m, depending on Dole’s performance.

In a statement Total Produce said the move represented a “significant step in the history of Total Produce and a continuation of its expansion strategy.”

The statement also clarified that the Dole management team will continue to operate and serve its customers as it had done in the past.

David Murdock will continue as chairman of Dole while Total Produce chairman Carl McCann will be Dole’s vice chairman.

A total of 63m new ordinary shares in Total Produce were placed by Goldman Sachs International and Irish stockbroker Davy at €2.30 per share which represents around 19% of the company’s issued ordinary share capital and raised gross proceeds of €145m.

Total Produce recently acquired the California based company The Fresh Connection as well as 65% of Canadian Grandview Ventures Limited.