Dole Food Company, Inc. Announces Agreement To Sell Worldwide Packaged Foods And Asia Fresh Produce Businesses
Dole Food Company, Inc. will remain an international company, retaining its entire North American fresh vegetables business as well as its fresh fruit businesses in North America, Latin America, Europe and Africa, which together generated approximately $4.2 billion in revenues in fiscal 2011. Following completion of the transaction, Dole’s fresh produce business will continue to be an industry leader in the sourcing, distribution and marketing of bananas, pineapples and other tropical fruits, packaged salads, fresh-packed vegetables and fresh berries, representing the number one or two market share in many of the fresh fruit and vegetable products it sells in North America. Dole will continue to own the significant operating assets associated with these businesses, as well as non-core assets, including approximately 25,000 acres located in Oahu, Hawaii.
In connection with the transaction, Dole will recapitalize its debt structure, with any new debt expected to be issued on more favorable terms, reflecting the improved leverage profile of the company. Also in connection with the transaction, Dole expects to adopt cost-saving initiatives and corporate restructuring in order to right-size the company. Dole will realign and streamline its global personnel and corporate structure to conform to the specific needs of the remaining fresh produce businesses. As part of this process, Dole will evaluate the clearing of any legacy costs and liabilities remaining with the company. Dole expects to fully implement these measures by the end of fiscal 2013, which are expected to result in aggregate cost savings of approximately $50 million annually.
"The consummation of this transaction will result in a more focused Dole that retains significant scale with more than $4 billion in revenue and a rich asset base,” said David H. Murdock, Dole’s chairman. “With a substantial reduction in debt and the expected cost savings, Dole will also be well positioned to take advantage of growth opportunities within the fresh produce category.”
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