Fresh Del Monte Produce buys Costa Rica producers

Fresh Del Monte Produce Inc., which makes fresh-cut fruit and vegetables, said Monday it bought two Costa Rica fruit companies and an affiliated sales and marketing business for a total of $403 million.

The company said the businesses, which include banana producer Desarollo Agroindustrial de Frutales S.A. and gold pineapple provider Frutas de Exportacion S.A., are collectively known as "Caribana."

The company said it expects the deal to add to its earnings in the first year.

Fresh Del Monte Produce said the acquisition will "substantially increase" its Del Monte-branded banana and Del Monte Gold Extra Sweet pineapple production from Central America.

The company added that Caribana's production and packing facilities are near its existing Costa Rica operations, which could create a "significant opportunity for operating synergies."

Fresh Del Monte Produce also said the deal increased its land holdings in Costa Rica by about 13,000 hectares of farm land.