Dole sells assets, will focus on fresh

Stockholders of Dole Food Company have approved the sale of its worldwide packaged foods and Asia fresh businesses to ITOCHU Corporation for $1.685 billion. The transaction has already received required regulatory approval in six of seven reviewing countries, and both Dole and ITOCHU are continuing to work toward consummating the sale by December 31, subject to final regulatory approval from China.

The consummation of the sale will result in a substantial portion of Dole’s operations being sold to ITOCHU, with the new Dole having 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 percent.

“This is a transformative transaction for our company and we are pleased to have received stockholder approval today,” said David H. Murdock, Dole’s chairman. “While Dole’s fresh produce business will be significantly smaller and is continuing to experience declining earnings in a continued difficult economic environment both in the United States and in Europe, I am very optimistic about the long-term future of Dole and its prospects.

“We will remain an industry leader in the sourcing, distribution and marketing of bananas, pineapples and other tropical fruits, packaged salads, fresh-packed vegetables and fresh berries. With the planned substantial reduction in debt and the eventual lower cost structure from right-sizing our organization, Dole will be well positioned to pursue growth opportunities within the fresh produce industry.”