Dole Food Company, Inc. (DOLE: Quote) said Monday that it has signed a definitive agreement with ITOCHU Corp. for the sale of Dole's worldwide packaged foods and Asia fresh produce businesses for $1.685 billion in cash.
The proposed deal results from Dole's previously announced strategic business review process. Dole said it will use the cash proceeds from the deal for debt reduction, to pay deal-related expenses, and for restructuring and other corporate purposes.
Dole Worldwide Packaged Foods produces canned pineapple, canned pineapple juice, fruit juice concentrate, fruit in plastic cups, jars and pouches, fruit parfaits, healthy snack foods and frozen fruit. Dole Asia Fresh Produce grows, sources, ships and distributes consistently high-quality fresh fruit and vegetables principally in Asia. The combined revenue of those businesses totaled about $2.5 billion in 2011.
The deal contemplates that ITOCHU will have exclusive rights to the DOLE trademark on packaged food products worldwide and on fresh produce in Asia, Australia and New Zealand.
Dole will retain its entire North American fresh vegetables business as well as its fresh fruit businesses in North America, Latin America, Europe and Africa, which together generated about $4.2 billion in revenues in fiscal 2011.
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by RTT Staff Writer
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