US-based Dole Food has announced that it has received stockholder approval for the sale of its worldwide packaged foods and Asia fresh businesses to Japanese trading house Itochu for $1.685bn in cash.
Currently, the deal has received required regulatory approval in six of seven reviewing countries. The companies expect to complete the deal by 31 December 2012, subject to final regulatory approval from China.
Following the sale, Dole operations will continue to own two lines of fresh produce businesses: fresh fruit and fresh vegetables, which posted revenues of $4.2bn in fiscal 2011.
The proceeds from the sale transaction will be used by Dole to lower debt, pay deal-related expenses, and implement a restructuring plan.
Dole chairman David H Murdock said that with the substantial reduction in debt and the eventual lower cost structure from streamlining the organization, Dole will be well positioned to pursue growth opportunities within the fresh produce industry.
Dole has also announced planned leadership changes related to the sale transaction. David H Murdock will return to the role of chairman and chief executive officer, while C Michael Carter will take up the added role of president and chief operating officer with all operating and corporate functions reporting to him.
