Chiquita is poised to become a Brazilian-owned brand after the Cutrale-Safra group and the banana giant reached agreement on a buyout.
The agreement, which looked highly unlikely just weeks ago when the company was poised for a tie-up with Fyffes, will see Cutrale-Safra acquire all outstanding Chiquita shares for US$14.50 each in cash. Despite publicising the deal as a merger, Chiquita will become a wholly owned subsidiary of Brazilians Cutrale-Safra.
The deal is valued at approximately US$1.3 billion, including the assumption of Chiquita's net debt, and is subject to regulatory approvals. It is expected to be completed by the end of the year or early 2015.
'We are pleased to make this long-term investment in Chiquita, one of the leading fresh produce companies in the world,' Cutrale-Safra said. 'It has impressive brand loyalty and recognition through its Chiquita and Fresh Express brands, providing the company with a strong competitive edge in the growing worldwide demand for high-quality fresh fruits and salads.'
Following the takeover Chiquita will be able to 'access Cutrale-Safra's substantial experience in all aspects of the fruit and juice value chain and extensive financial expertise,' the group said, adding that it can tap into Cutrale's knowledge of farming and distribution and Safra's reputation for business and investment.
Chiquita chief executive Ed Lonergan said: 'This transaction demonstrates our board's commitment to maximising shareholder value and underscores the significant progress Chiquita has achieved over the past couple of years in our financial and operational performance.'
'We are pleased with the substantial value and signficant all-cash premium we have delivered through this exciting agreement with the Cutrale Group and the Safra Group. Through the due diligence process, we developed a tremendous amount of respect for the entire Cutrale-Safra team, especially their knowledge and understanding of global agribusiness, shipping and manufacturing.'
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