Dole plc announced it reached an agreement to sell its 65% equity stake in Progressive Produce to PTF Holdings, a portfolio company of Arable Capital Partners, LLC for $120.25 million in gross cash proceeds. 

Progressive Produce, located in Los Angeles, California, is a grower, packer, and distributor of conventional and organic produce to the retail, wholesale, and food service sectors in the U.S. and Canada. The company is one of California's  premier produce companies with annual sales of over $400 million.

PTF Holdings is the parent company of Pacific Trellis Fruit, and after the transaction, the existing management team of Progressive Produce will remain with the enlarged business of Progressive Produce and Pacific Trellis Fruit and retain an ownership stake.

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"We are pleased to announce the sale of our equity interest in Progressive Produce to Arable Capital Partners. Since our initial investment in 2016, the business has been a strong performer within our Group," said Carl McCann, executive chairman of Dole plc. 

He added, "The proceeds from this sale will further strengthen our financial position and enhance the Group’s focus on, and investments in, our core activities."

The transaction, expected to close in March 2024, will be finalized once closing conditions are met.

Net proceeds from the sale received by Dole are expected to be used primarily for debt reduction, Yahoo Finance reports.

Commenting on the transaction, Derek Yurosek, managing director of Arable Capital Partners said, "While Progressive Produce and Pacific Trellis Fruit will continue to operate independently, we are excited about the chance for them to work together to continue to grow their businesses and ultimately bring even greater value to their grower partners and customers."