The transaction has resulted in a major portion of Dole’s operations and assets being sold, including exclusive rights to the Dole brand on certain packaged food products worldwide and on certain fresh produce in Asia, Australia and New Zealand.
The new Dole will have a smaller footprint as a commodity produce company with overall revenue in the $4.2bn range with two lines of business: fresh fruit and fresh vegetables.
Dole has put in place a new capital structure which, together with the proceeds from the sale transaction, was used to pay off Dole’s existing indebtedness of approximately $1.7bn, to pay transaction-related taxes, costs and expenses, and to pay for the extinguishment of all of its long-term Japanese yen hedges and the European Commission’s fine of €45.6m and provides funding for the anticipated right-sizing of the new Dole and other post-closing restructuring expenses, and the possible resolution of the previously disclosed Honduras tax case and the DBCP cases.
Source: Dole Food Company
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