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Dole to Merge with Total Produce
USAgNet - 03/03/2021

Dole is set to merge with Dublin-based Total Produce, the leading fresh produce company in the EU, resulting in a combined entity that will be the largest fresh produce company in the world.

Once established, the new company, which will be under the Dole Plc name, will have an EU headquarters in Dublin, Ireland, and a U.S. headquarters in Charlotte, North Carolina, and plans to list on the New York Stock Exchange with intentions of raising between $500 million and $700 million which will be used to pay down debt.

According to Global AgInvesting Media, Total Produce will cease to be listed on Euronext Dublin and the London Stock Exchange.

Dole has been back and forth between being public and private in recent years. David Murdock, chairman and CEO of Dole Foods, first took the company private in 2003, then public in 2009, and finally private again in 2013 when he reached an agreement with the company to acquire it in a $1.2 billion cash deal.

However, since then, Dole has been looking to go public once again, as consumer demands have shifted toward more health conscious food choices, increasing the demand for fruits and vegetables.

Five years after going private in 2013 news broke that Total Produce agreed to acquire a 45 percent stake in Dole for $300 million in 2018, giving Dole an enterprise value of about $2 billion at the time.

This deal will not only simplify the structure of the two companies under common ownership through full operational integration, realization of synergies, and value creation, but it will result in a company that is twice as large as its closest rival, with combined revenue of about $9.7 billion, adjusted EBITDA of about $379 million, and total assets valued at approximately $4.5 billion, according to a statement announcing the merger.


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