This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Chiquita Brands, Fyffes Lift Merger Savings Goal

NEW YORK ( The Deal) -- Reaffirming their commitment to walk down the aisle, Chiquita Brands International (CQB) and Fyffes plc said Wednesday, Aug. 27, that they could complete their merger as early as October and had identified an extra $20 million in expected synergies from the fusion.

Banana distributor Fyffes lifts its earnings forecast:

WATCH: More market update videos on TheStreet TV

The update comes after Chiquita rejected a surprise $611 million takeover offer earlier this month from orange juice maker Cutrale Group and Safra Group, the Brazilian investment group led by billionaire Joseph Safra. The approach came more than five months after Chiquita, of Charlotte, N.C., and Dublin-based Fyffes agreed to join forces to become the world's leading banana producer.

"Chiquita and Fyffes remain committed to the transaction and are continuing to work together to complete the combination as expeditiously as possible," Chiquita CEO Ed Lonergan and Fyffes Chairman David McCann said in a statement on Wednesday.

The companies are now predicting at least $60 million in pretax synergies by the end of 2016, after identifying an extra $20 million from sourcing, shipping and IT functions.

They expect to achieve half of the $60 million in synergies in the first year after merging, and the rest by the end of the second year.

Earlier this month the companies notified their March deal to the European Commission, which has given itself until Sept. 19 to wrap up its routine one-month investigation. While the companies initially gave an end-of-year completion timetable, on Tuesday they said that October is "possible."

Fyffes shares rose 4.9% in Dublin Wednesday morning to just below 0.97 euros, while Chiquita shares closed at $14.07 in New York, on Tuesday, little changed from Monday.

Post-merger, Lonergan will serve as chairman of ChiquitaFyffes and McCann, whose family has run Fyffes since the early 20th century, will be CEO.

ChiquitaFyffes will have close to $4.6 billion in 2013 sales and be listed on the New York Stock Exchange. The combined company will surpass Westlake Village, Calif.-based Dole Food Co. as the world's top banana company but will hold the No. 2 slot behind Dole in the U.S. ChiquitaFyffes will be the U.S. market leader in packaged salads, its top melon importer, and the third-largest pineapple distributor in the U.S. and Europe.

The combination will bring two companies back together nearly three decades after a part of what is now Fyffes was sold in 1986 by United Fruit Co., which later became Chiquita.

Separately on Tuesday, Fyffes raised its target for adjusted 2014 Ebita to between 38 million euros ($50 million) and 42 million euros from a previous target of between 30 million euros and 35 million euros. 2013 Ebita was 32 million euros. Shareholders of both companies are set to vote on the deal in separate meetings on Sept. 17.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CQB $14.49 0.00%
AAPL $124.43 -1.54%
FB $82.16 -1.20%
GOOG $548.00 -0.73%
TSLA $188.77 -0.94%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs