Ireland-based Total Produce has finalized its US$300 million purchase of a 45% stake in U.S.-based Dole Food Company, following yesterday’s regulatory approval from the European Commission.
The deal between two of the world’s biggest fresh produce companies is expected to result in an industry behemoth with combined sales of over US$9 billion.
“I am excited for the future of Dole in our relationship with Total Produce,” said Dole owner David H. Murdock.
“They have a long and successful history in the produce industry, and I have complete confidence that as the premier produce brand, Dole will be able to tap that expertise in growing our position worldwide.
“Both Dole and Total Produce have a standard of perfection that leads the industry in innovation, together we will further our joint mission of providing the highest quality produce to the world.”
Post-closing of the transaction, Total Produce and Murdock will have balanced governance rights with respect to Dole, a release said.
Dole’s board of directors will comprise six members, three of which are to be appointed by Murdock (himself, Janine Peck, Roberta Wieman) and three be appointed by Total Produce (the company’s chairman Carl McCann, Rory Byrne and Jimmy Tolan).
Murdock will continue as chairman of Dole and McCann will be appointed vice chairman. Major decisions will require consent of at least one board member appointed by each of Total Produce and Murdock.
Johan Lindén will remain Dole’s president and CEO, and the management team will also remain in their current roles and continue to lead the organization into the future.
“We are delighted to conclude this very substantial transaction with David Murdock who has been an inspirational and visionary leader since he acquired a majority shareholding in Dole in 1985,” said McCann.
“Dole is one of the world’s foremost fresh produce companies and we look forward with great enthusiasm to working very closely together with David and his excellent management team to continue to develop the business in the future.”