Dole plc completes sale of fresh vegetables division
Dole plc has completed a divestiture of its fresh vegetables division after canceling a 2023 sale attempt because of a U.S. Department of Justice objection.
A portion of the Dole Fresh Vegetables Division has been sold to Arable Capital Partners LLC for $140 million, according to a news release. Arable will combine the division with its organicgirl LLC business (under og Holdco LLC), with Dole retaining its Huron, California and Yuma, Arizona facilities post-transaction.
The total includes $90 million in cash and a $50 million seller note, along with a $10 million potential earn out, according to the release
The Fresh Vegetables Division includes the processing and sale of whole produce such as iceberg, romaine, leaf lettuce, cauliflower, broccoli, celery, asparagus, artichokes, green onions, sprouts, radishes, and cabbage, as well as salads and salad kits. The business employs more than 3,0000 workers and operates three processing plants.
“We are pleased to announce the sale of our Fresh Vegetables Division to Arable Capital,” Carl McCann, Dole plc executive chairman, said in the release. “A combination with organicgirl will create a strong platform to realize operational efficiencies and expand the overall offering and service to customers and consumers.
“The completion of this sale represents an important strategic milestone for the group and will enable us to further concentrate our efforts and investments on our core business activities.”
In 2023, Dole plc agreed to sell the division to an affiliate of Fresh Express Inc., a wholly owned subsidiary of Chiquita Holdings Ltd. Gross proceeds of the sale were expected to total approximately $293 million in cash, according to a news release, with net proceeds to be used primarily for Dole debt reduction.
In March 2024, that deal was nixed after the Justice Department said it would pursue litigation against it, saying the transaction would have reduced competition and led to higher grocery prices.
“With strong brands and presence across multiple channels, as well as strong leadership, Dole Fresh Vegetables is an outstanding addition to our portfolio that is positioned for continued growth and success,” Derek Yurosek, Arable managing director, said.
