Dole Near to Completing $1.7 Billion Sale

 Breaking News
  • European Commission Clears Bayer’s Acquisition of Monsanto The European Commission has approved under the EU Merger Regulation the $62.5 billion acquisition of Monsanto by Bayer. The merger is conditional on the divestiture of an extensive remedy package, which addresses the parties’ overlaps in seeds, pesticides and digital agriculture. Commissioner Margrethe Vestager, in charge of competition policy, says: “We have approved Bayer’s plans to [...]...
  • Management Plan to Fortify Fishing Sector in Western Mediterranean Sea The European Commission has proposed a multi-annual plan for fish stocks in the western Mediterranean Sea. The proposal covers demersal fish stocks, ie fish that live and feed at the bottom of the seabed, and bring a significant income to the fisheries sector in the region. According to the latest data, it is estimated that in 2015, [...]...
  • Major International Summit in Belfast to Tackle Escalating Problem of Food Integrity Food-security experts from all over the world will converge on Belfast from 28-31 May 2018 for a major Summit on how to feed a growing global population – amid massive challenges such as climate change, Brexit, labyrinthine food-supply chains and food fraud on a global scale. The Belfast Summit on Global Food Integrity will be chaired by Professor Chris Elliott [...]...
  • Cargill’s Launches De-oiled Rapeseed Lecithin Products In response to growing consumer demand for label-friendly ingredients, Cargill is introducing a new range of de-oiled lecithin products to complete its portfolio of GMO and non-GMO lecithin products.  A first to market in Europe, Cargill’s de-oiled rapeseed lecithin products help bakery and snacks manufacturers deliver the recognizable ingredient label that consumers want, at an [...]...
  • Tetra Pak Scoops Top Award For Manufacturing Excellence Tetra Pak’s packaging material factory in Izmir, Turkey, has received the world’s top award for manufacturing excellence. In doing so, it becomes only the 22nd factory worldwide to win the prestigious award in more than 40 years. Appraised by the Japan Institute of Plant Maintenance​, the World Class Total Production Maintenance (TPM) Award is presented to facilities that [...]...

Dole Near to Completing $1.7 Billion Sale

Dole Near to Completing $1.7 Billion Sale
January 03
11:51 2013

Dole Food Company expects the sale of its worldwide packaged foods and Asia fresh businesses to ITOCHU Corporation for $1.685 billion in cash to be completed in early 2013. The sale transaction is still awaiting Chinese regulatory approval, with the required regulatory approvals from the other six countries involved already received.

Following the sale to ITOCHU, the new look Dole will have a smaller footprint with two lines of fresh produce businesses – fresh fruit and fresh vegetables. The Dole operations will no longer include the worldwide packaged foods and Asia fresh businesses, resulting in overall revenue for the new Dole in the approximate $4.2 billion range with revenue from its fresh fruit business line being reduced in size by approximately 30%.

Dole is currently finalising deals with four of its banking partners for a new $400 million term loan and a $300 million revolving credit facility, to be implemented upon completion of the sale transaction. The $400 million term loan, together with substantially all of the proceeds from the sale transaction, will allow the US-based group to pay off its existing indebtedness of approximately $1.7 billion, and will provide needed funding for transaction-related taxes, costs and expenses, extinguishment of all or part of its long-term Japanese yen hedges, the anticipated right-sizing of the new Dole and other post-closing restructuring expenses, and possible resolution of the previously disclosed Honduras tax case, European Union Antitrust Inquiry and the DBCP cases.

Upon completion of the sale transaction, Dole’s resulting net leverage ratio will be approximately 1.8x (based on the new net debt level and 2013 projected adjusted EBITDA of the new Dole).

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • March 28, 2018FOOD INDUSTRY
  • April 4, 2018The leading event for the snack and food-on-the-go market
  • April 5, 2018Slow food The forum for good taste
  • April 10, 2018EXPO XXI Warsaw International Expocentre
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here