Global banana giant Chiquita has struck a shipping agreement with Eastwind Maritime and NYK LauritzenCool, to sell its 12 refrigerated cargo vessels for $227 million (£114m).

The ships will be charted back from an alliance formed by Eastwind Maritime and NYK LauritzenCool. The three parties also entered a long-term strategic agreement, in which the alliance will serve as Chiquita’s preferred supplier in ocean shipping to and from Europe and North America.

As part of the transaction, Chiquita will lease back 11 of the vessels for a seven-year period, with options for up to an additional five years, and one vessel for a period of three years, with options for up to an additional two years.

The vessels to be sold consist of eight reefer ships and four container ships, which collectively transport around 70 per cent of Chiquita’s banana volumes shipped to core markets in Europe and North America. The agreements also provide for the alliance to service the remainder of Chiquita’s core ocean shipping needs for North America and Europe, including through multi-year time charters commencing in 2008 for seven additional reefer vessels.

“This long-term agreement will increase our financial flexibility, simplify our business model and allow us to increase our focus on providing branded, healthy, fresh foods to consumers worldwide,” said Chiquita chairman and ceo Fernando Aguirre. “We are confident that the alliance parties, whose core business is global shipping, will ensure the continuing reliable, high-quality shipment of Chiquita products. The ship sale transaction will significantly reduce our debt, and the alliance will better position us to adapt our shipping services as we grow our business over time.”

“This transaction is an exciting and rare opportunity to acquire a large, modern, highly efficient refrigerated fleet and to work with one of the best names in the produce industry,” said Eastwind Maritime chairman John Kousi.

Topics