Deal allows multinational to focus on its high-margin tropicals business
Dole has announced the sale of its Fresh Vegetables Division to Holdco, the parent company of organicgirl, a portfolio company of Arable Capital Partners, for US$140mn.
The deal streamlines Dole’s portfolio, enabling it to focus on its high-margin tropicals business and boosts the company’s financial flexibility.
Employing more than 3,000 people, the Fresh Vegetables Division markets 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. It includes agricultural operations and three processing plants across the US and employs more than 3,000 people.
Dole will retain its facilities in Huron, California and Yuma, Arizona as part of the agreement.
Commenting on the transaction, Carl McCann, executive chairman of Dole, said: “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 realise operational efficiencies and expand the overall offering and service to customers and consumers.
“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.”
Derek Yurosek, managing director of Arable Capital Partners said: “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.”
Separately, Arable Capital Partners’ organicgirl also announced that it has acquired Braga Fresh, a vertically integrated grower and processor of both conventional and organic vegetables, offering salad kits, blends and fresh-packed vegetables.
Mark Drever, co-founder of organicgirl, said: “This combination unlocks exciting new potential for the organicgirl brand and presents meaningful opportunities for the dedicated teams across all three companies. With enhanced resources and scale, we are even better positioned to deliver on our promise of quality and care to consumers”.
