Dole plc agrees to sell its fresh vegetables division to Fresh Express

Dole plc has entered into a definitive agreement to sell Dole’s Fresh Vegetables Division to an affiliate of Fresh Express Inc. for approximately $293 million in cash, subject to certain adjustments, according to a news release.

Fresh Express Inc. is a wholly owned subsidiary of Chiquita Holdings Limited.

Dole’s Fresh Vegetables Division comprises operations related to the processing and sale of whole produce such as iceberg, romaine and leaf lettuces, cauliflower, broccoli, celery, asparagus, artichokes, green onions, sprouts, radishes and cabbage, as well as salads and meal kits, according to the release.

In the financial year ended Dec. 31, 2021, the Fresh Vegetables Division reported revenue of $1.28 billion. The division, employing 3,000 people, includes agricultural operations and four processing plants across the U.S. and employs more than 3,000 people, the release said.

The transaction is subject to regulatory approval and the parties expect the transaction will close after approval is obtained, subject to customary closing conditions.

Net proceeds from the sale are currently expected to be used primarily for debt reduction of Dole, the release said.

“We are pleased to announce the sale of our Fresh Vegetables Division,” Carl McCann, executive chairman of Dole plc, said in the release. “Combining with Fresh Express will improve the offering and service to customers and consumers through increased investments in innovation, efficiencies, and food safety.”

McCann thanked employees of the division for their contributions to Dole.

“We believe the sale of this division will strengthen our financial position and increase the Group’s focus on and investments in our core activities,” McCann said in the release.

Jose Luis Cutrale Jr., Chiquita Holdings’ chairman, said the acquisition will lead to expanding choices for consumers.

“With this transaction, we want to combine our best practices across food safety, freshness of produce, mechanization, automation, and innovation to offer rapidly expanding choices of safer and healthier produce products to the consumer," Cutrale said in the release. “This combination will ultimately help drive growth in the entire produce industry and support higher demand for our valued produce grower base in California, Arizona, Colorado, Florida and across the entire U.S. The combination of both businesses, when consummated, will allow us to continue to create the best products under the Fresh Express umbrella. The anticipated cost savings from this combination will help partially mitigate the recent period of inflationary pressures experienced throughout the produce, food and beverage sectors of the economy.”

The acquisition will bring an improved value proposition to the consumer while allowing the company to better manage the shortage of agricultural and manufacturing labor, supply chain challenges and water issues, Cutrale said in the release. 

“We are very much looking forward to welcoming the dedicated Dole Fresh Vegetables Division team to the Chiquita Holdings family,” he said.