Total Produce acquires 65% stake in Progressive Produce

Fresh produce company Total Produce has acquired a 65% equity stake in California-based company Progressive Produce.

Headquartered in LA, Progressive Produce cultivates conventional and organic products, and packs and distributes them to the retail, wholesale and food service markets across Canada and the US.

Progressive Produce president Jim Leimkuhler and vice-presidents Victor Rodarte and Jack Gyben will continue to serve as equity holders of the business. They will remain as members of the company’s executive management team.

Total Produce chairman Carl McCann said: "We are delighted to become co-owners in Progressive Produce.

"This transaction with a leading California produce company further broadens our US operations and is in line with our strategy.

"We look forward to working with the excellent people in Progressive Produce as it continues to develop its very successful business expansion in future years."

The purchase consideration will be satisfied with an initial payment on closing. A further payment due in 2019 will depend on the company’s profit targets.

Leimkuhler said: "We are very pleased and excited to join with Total Produce.

"This transaction will further strengthen the business we have developed and grown over many years.

"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."

Founded in 1967, Progressive Produce provides various domestic, local, fresh and imported products. The company supplies onions, potatoes, organics, asparagus and other fresh fruits and vegetables from four distribution facilities in Washington and California.

Progressive Produce reported its 2015 sales in excess of $200m and its gross assets to be $36m on 31 December 2015.