Irish fresh-produce provider Total Produce has announced that it is acquiring a 45% equity stake in Dole Food Company for $300 million.
Total Produce says that the deal will bring together two leading companies with complementary positions in various produce segments and geographies, representing a “very significant step” in the company’s expansion strategy.
It added that Dole’s management team will continue to operate the business as before, but the two companies will share governance rights, including equal board representation.
“I believe that this investment in Dole is the single most positive step in our company’s history,” said Carl McCann, chairman of Total Produce.
“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,” McCann added.
Dole is a leading producer of fresh products, including bananas, pineapples, and fresh-cut salads, generating revenue of $4.45 billion last year.
The company is currently owned by chairman David Murdock, who has had a controlling interest since 1985.
Total Produce says that Dole’s strong presence in North America will complement its own position in the European market and allow for future expansion.
This deal is part of the Irish group’s continuing international expansion plans. Last November, Total Produce acquired a 50% equity stake in California-based firm Fresh Connection, following deals with Progressive Produce and Canada’s Oppenheimer Group.
Total Produce reported a 12% increase in revenue, to €2.15 billion, for the first half of the year, boosted by the contribution of the group’s recent acquisitions.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.