Dole to sell Progressive Produce in $120 million deal

Dole plc has reached an agreement to sell its 65% equity stake in subsidiary Progressive Produce LLC in a deal worth $120 million.

The equity stake will be sold to PTF Holdings LLC, parent company of Pacific Trellis Fruit LLC and a portfolio company of Arable Capital Partners LLC, according to a news release. Dole will receive gross cash proceeds of $120.25 million from the sale and is expected to use net proceeds primarily for debt reduction.

Los-Angeles based Progressive Produce is a grower, packer and distributor of conventional and organic produce to the retail, wholesale and foodservice sectors in the U.S. and Canada. Founded in 1967, the company has annual sales of more than $400 million, according to the release.

“Since our initial investment in 2016, the business has been a strong performer within our group,” Carl McCann, executive chair of Dole plc, said in the release. “We would like to thank the current and former management teams for their dedication, passion and significant contributions to the growth of this business over the time that we have been partners. We wish the executive team and their new majority owners continued success for the future. The proceeds from this sale will further strengthen our financial position and enhance the group’s focus on, and investments in, our core activities.”

Post-sale, the existing Progressive Produce management team will remain with the enlarged business of Progressive Produce and Pacific Trellis Fruit and retain an ownership stake, according to the release.

The transaction is expected to close in March.

“Arable is thrilled about the opportunity to partner with Progressive Produce,” Derek Yurosek, managing director of Arable Capital Partners, said in the release. “The company is a leader in top produce categories and has an impressive and diversified customer base as well as an exceptional team. We look forward to helping Progressive Produce continue to deliver outstanding products and service to its retail, wholesale and foodservice customers.

“While Progressive Produce and Pacific Trellis Fruit will continue to operate independently, we are excited about the chance for them to work together to continue to grow their businesses and ultimately bring even greater value to their grower partners and customers.”