Total Produce Takes 45% Stake in Dole
Total Produce, Europe’s leading fresh produce company, has agreed to acquire a 45% equity stake in Dole Food Company from David H Murdock for a cash consideration of $300 million. Dole is one of the world’s largest fresh produce companies. For the twelve months ended October 7, 2017, Dole generated revenue and Adjusted EBITDA of $4.455 billion and $237 million, respectively. The transaction consideration for the 45% interest implies a Dole enterprise value of approximately $2 billion and 9x Dole Adjusted EBITDA.
Total Produce and Dole are two of the largest fruits and vegetables companies in the world with revenue of €3.995 billion and $4.455 billion, respectively. The transaction brings together two industry leaders creating a combined group with increased scale and geographic and product diversification. Dole’s strong presence in North America will complement Total Produce’s position in the European market. Dole has leadership positions in a number of its core product categories including bananas, pineapples, fresh vegetables and grapes that will align with Total Produce’s product mix.
Dole and Total Produce expect to deliver annualized synergies and cost savings at Dole of $15-20 million in the short-term and $35 million over the medium-term.
Carl McCann, chairman of Total Produce, comments: “I believe that this investment by Total Produce in Dole is the single most positive step in our company’s history. It places Total Produce at the forefront of our industry, and we anticipate it will create significant additional value for shareholders in the years ahead.”
