US-based Dole Food has completed the sale of its worldwide packaged foods and Asia fresh businesses to Japanese firm ITOCHU for $1.68bn in cash.
The sale included a major portion of Dole's operations and assets, including exclusive rights to the Dole brand on certain packaged food products worldwide and on certain fresh produce in Asia, Australia and New Zealand.
Dole chairman and CEO David Murdock said that the transaction is a part of a comprehensive strategic review of Dole's businesses announced on 3 May 2012, aimed at enhancing shareholder value, and was approved by the company's stockholders on 6 December 2012.
"The Dole operations will no longer include the worldwide packaged foods and Asia fresh businesses, which for fiscal 2011 represented approximately 34% of Dole's revenues and 56% of its operating income," Murdock added.
The new Dole will have a smaller footprint as a commodity produce company with revenues in the $4.2bn range with two lines of business - fresh fruit and fresh vegetables.
Dole used the proceeds from the sale transaction to pay off its existing debt of approximately $1.7bn, transaction-related taxes, costs and expenses, long-term Japanese yen hedges and the European Commission's fine of €45.6m.
In September 2012, Dole entered into an agreement with Itochu to sell its worldwide packaged foods business and Asia fresh produce business.
Dole's worldwide packaged foods business offers fruit parfaits, canned pineapple juice, canned pineapple, fruit juice concentrate, fruit in plastic cups, jars and pouches, healthy snack foods and frozen fruit, while its fresh produce business grows, sources, and ships fresh fruit and vegetables, primarily in Asia.
