Dole completes sale of processed food business

01-Apr-2013 - Last updated on 02-Apr-2013 at 16:07 GMT

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Dole, once synonymous with canned pineapple, is now exclusively a fresh foods company.

Dole Food Company has completed the sale of it global packaged foods and Asia fresh businesses to ITOCHU Corporation of Japan for $1.7 billion in cash. The transaction will include rights to the Dole name in certain packaged food products worldwide and some fresh produce in Asia, Australia and New Zealand.

Dole decided on the move in May, 2012, with shareholders approving the restructuring in December of last year. The transaction transforms Dole into a fresh commodity produce company with two lines of business: fresh fruits and vegetables with revenues in the $4.2 billion range.

It now has operations worldwide outside of the aforementioned markets in Asia Pacific. And, perhaps more importantly, it clears the books of its $1.7 billion in debt.

“This transformative transaction results from our comprehensive strategic review of Dole’s businesses announced May 3, 2012, aimed at enhancing shareholder value, and was approved by our stockholders December 6, 2012,” said David H. Murdock, Dole’s Chairman and CEO.

“The Dole operations will no longer include the worldwide packaged foods and Asia fresh businesses, which for fiscal 2011 represented approximately 34% of Dole’s revenues and 56% of its operating income.”