Irish produce company Total Produce has announced it will buy a 65% stake in the parent company of Canadian business Oppenheimer Group for no more than CAD$40 million (US$40.49 million).

The acquisition of shares in Grandview Ventures Limited will be separated into two stages, with the first payment of CAD$15 million (US$15.18 million) set to take place in January, giving Total Produce a 35% share.

A Total Produce release said an additional consideration for these shares will be made in 2015 if certain profit targets are met, with the remaining 30% stake to be purchased in 2017 for a price based on future profits.

Oppy will continue to be managed by its president John Anderson and the existing executive team.

"We are delighted to enter this strategic alliance with Total Produce, a partner that strengthens our ability to grow strategically while benefitting our growers and customers as we continue to operate autonomously," Anderson said.

"We are looking forward to the opportunities ahead as we leverage the synergies between our two organizations."

In a release, Total Produce highlighted the acquisition continued the company's international expansion, representing an important entry into the North American market that will be "earnings enhancing".

"We are very pleased to become shareholders in the Oppenheimer Group. This transaction offers us a significant growth opportunity and represents a continuation of the Group's development strategy of acquiring strong businesses in our sector," said Total Produce chairman Carl McCann.

"We look forward to working with John Anderson and his team who have an excellent reputation in this industry."

Oppy recorded sales of CAD$525 million (US$531.2 million) in 2011 with adjusted operating profits of CAD$11 million (US$11.13 million). The company is expected to have CAD$20 million (US$20.25 million) in net assets at completion of the acquisition.

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