This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TheDeal: Dole's CEO Continues History of Dealmaking

NEW YORK ( TheStreet) -- Billionaire David H. Murdock apparently has a taste for pineapple. And for taking a company private when it is at its weakest and later returning it to the public markets.

That proclivity is evident in his latest move, an offer of $12 per share in cash for the roughly 60% of Dole Food (DOLE) he does not own.

The offer comes as the fruit and vegetable giant has reported declining earnings. Its net income was nearly $67 million in the hole for the quarter ended in March, according to a recent 10-Q filing, compared to a profit or positive net income for the same period a year ago of about $16 million.

Dole's Ebitda is also expected to take a hit. It generated $162 million in Ebitda for the fiscal year ended Dec. 29, but is estimated to generate just $139 million for this year, ending on Dec. 31, according to data provided by Bloomberg.

The company launched a strategic review in May 2012 and brought on board investment banks Deutsche Bank Securities Inc. and Wells Fargo Securities International Ltd. for guidance.

Murdock's history with Dole began in 1985 when he became chairman and chief executive after taking control of parent company Castle & Cooke Inc., according to reports, though details of that transaction are scant. Murdock secured Castle & Cooke when he merged it with his company Flexi-Van Corp. in 1985, according to

According to the Los Angeles Times, in 1990, publicly listed Castle & Cooke put Dole Food on the auction block, but failed to find a buyer.

In 1995 Castle & Cooke was spun off as a real estate company, while Dole remained focused on fruits and vegetables.

Murdock took Castle & Cooke private for about $600 million in 2000, according to The Deal Pipeline. At the time, he was chairman of both companies.

The price tag of the Castle & Cooke deal worked out to $18.50 per share. The company had been trading at a little over $12 per share before Murdock's bid was announced. In the five years after the split with Dole, Castle & Cooke shares never traded above $22.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DOLE $0.00 0.00%
AAPL $112.12 0.00%
FB $93.24 0.00%
GOOG $643.61 0.00%
TSLA $220.69 0.00%


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs