Total Produce and Dole Food Company merge
Fresh produce company Total Produce is merging with Dole Food Company under a newly-created company – Dole plc – moving their stock exchange listings from Dublin and London to the US.
In a statement, Total Produce has said that the deal will simplify the existing structure between the two companies.
Under the terms of the agreement, Total Produce shareholders will receive 82.5% of Dole plc shares.
The companies expect Dole plc to have an estimated combined 2020 revenue of approximately US$9.7 billion and total assets of approximately US$4.5 billion.
Dole brand and expansion
Dole Food Company was founded in 1851 and is one of the world’s leading producers, marketers and distributors of fresh fruit and fresh vegetables.
The newly-created Dole plc is expected to benefit from the strength of the Dole brand to further expand.
As a result of the deal, Dole plc intends to target raising US$500 to US$700 million in primary equity capital to strengthen and de-lever the combined balance sheet.
Stock market listings
Upon completion of the US listing of Dole plc, Total Produce will no longer to be listed on Euronext Dublin and the London Stock Exchange.
Dole plc, operating under the Dole brand, will be incorporated in Ireland, with its global headquarters in Dublin, while its headquarters for the Americas will be in Charlotte, North Carolina.
Commenting on today’s announcement, chairman of Total Produce, Carl McCann, said:
“I am delighted with this transaction, which combines two highly complementary premium businesses to create the global leader in fresh produce.
I am confident the combined business will open new avenues of value creation for shareholders and pursue innovation in healthy nutrition for our customers worldwide.
“The combined company will become the largest global player with over 170 years of history in fresh produce in both companies, a highly diversified portfolio, resilient earnings and a strong balance sheet that positions us well for accelerated growth.”
Shares in Total Produce jumped by more than 25% today on the back of the merger news.