In a strategic move, Dole plc has sold Dole’s Fresh Vegetables Division to Og Holdco, LLC, the parent company of organicgirl LLC, a portfolio company of Arable Capital Partners, LLC.
The completion of this sale represents an important strategic milestone for the group and will enable it to further concentrate its efforts and investments on its core business activities, according to a news release.
The consideration for this sale is $140 million, comprising $90 million in cash and a $50 million seller note (collectively the “purchase price”), and a $10 million potential earn-out, the release says. The cash portion of the purchase price is subject to customary adjustments for net working capital, cash and indebtedness. Dole says it is retaining its facilities in Huron, Calif., and Yuma, Ariz.
The Fresh Vegetables Division comprises operations related to the processing and sale of whole produce such as iceberg, romaine, leaf lettuce, cauliflower, broccoli, celery, asparagus, artichokes, green onions, sprouts, radishes and cabbage, as well as salads and salad kits. The business has agricultural operations and three processing plants across the U.S. and employs more than 3,000 people, the release says.
“We are pleased to announce the sale of our Fresh Vegetables Division to Arable Capital. A combination with organicgirl will create a strong platform to realize operational efficiencies and expand the overall offering and service to customers and consumers,” says Carl McCann, executive chairman of Dole plc.
“The completion of this sale represents an important strategic milestone for the Group and will enable us to further concentrate our efforts and investments on our core business activities. We would like to thank the dedicated management and employees of the Fresh Vegetables business for their valuable contributions and commitment over the years,” McCann says.
“With strong brands and presence across multiple channels, as well as strong leadership, Dole Fresh Vegetables is an outstanding addition to our portfolio that is positioned for continued growth and success,” says Derek Yurosek, managing director of Arable Capital Partners.
Arable’s current investments include Braga Fresh, Bud Antle (Dole Fresh Vegetables), Progressive Produce, Pacific Trellis Fruit, organicgirl, Royal Ridge Fruits, Blazer Wilkinson Gee, and Laurel Ag & Water.
