Employees of both companies have job security for a year after the merger is completed, which must be done my March 10. Current employees will continue “with terms and conditions of employment no less favorable” than they had before the merger, according to the SEC filing.
However, “based on preliminary discussions of the management teams of Chiquita and Fyffes, it is Chiquita and Fyffes expectation that there will be a reduction in headcount,” according to the document.
Fyffes fruit business
Fyffes has three product categories — bananas, pineapples and melons — with bananas being the largest in terms of revenues and profits. In 2013 bananas generated 80% of Fyffes consolidated net sales, according to the SEC filing.
For 2013, Fyffes posted gross profits of $94.5 million, according to the SEC documents.
“Fyffes produces all of the melons and more than 50% of the pineapples and manages farms producing approximately 5% of the bananas it sells,” according to the SEC filing.
In 2013 Fyffes distributed about 55 million cases of bananas in Europe and North America; 9 million cases of pineapples in Europe and the U.S.; and 16 million cases of melons in North America.