Dole has announced that it will sell its Fresh Vegetables Division to Fresh Express, a wholly owned subsidiary of Chiquita Holdings, for around $293 million.
The Fresh Vegetables Division comprises operations related to the processing and sale of whole produce such as iceberg, romaine, leaf lettuces, cauliflower, broccoli, celery, asparagus, artichokes, green onions, sprouts, radishes, and cabbage, as well as salads and meal kits.
In the financial year ended December 31, 2021, the Fresh Vegetables Division reported revenue of $1.28 billion.
The business has agricultural operations and four processing plants across the United States and employs more than 3,000 people.
The transaction is subject to regulatory approval and the parties expect that the transaction will close after approval is obtained, subject to customary closing conditions.
Net proceeds from the sale are currently expected to be used primarily for debt reduction of Dole.
"Combining with Fresh Express will improve the offering and service to customers and consumers through increased investments in innovation, efficiencies, and food safety," said Carl McCann, Executive Chairman of Dole plc," said Carl McCann, Executive Chairman of Dole plc.
"We believe the sale of this division will strengthen our financial position and increase the group's focus on and investments in our core activities," he added.
Jose Luis Cutrale Jr., Chiquita Holdings' Chairman said they are looking forward to welcoming the Dole Fresh Vegetables Division team.
"The combination of both businesses, when consummated, will allow us to continue to create the best products under the Fresh Express umbrella," he said.
"The anticipated cost savings from this combination will help partially mitigate the recent period of inflationary pressures experienced throughout the produce, food and beverage sectors of the economy," he added.
