Dole has divested its fresh vegetables division in the United States, selling it to Arable Capital Partners after a prior unsuccessful attempt.
In a joint announcement, the New York-listed company revealed the sale of this unit to Organicgirl’s holding company, which is part of Arable’s portfolio, for $140 million. This strategic move is aligned with current food and beverage industry trends, particularly focusing on optimizing operational efficiencies.
Carl McCann, executive chairman of Dole, stated that the “combination with Organicgirl will create a strong platform to realise operational efficiencies and expand the overall offering and service to customers and consumers.” Moreover, McCann emphasized that this sale will “enable us to further concentrate our efforts and investments on our core business activities.”
Importantly, Dole will continue to operate its facilities located in Huron, California, and Yuma, Arizona, following this transaction. The company has been attempting to sell its fresh vegetables arm for over two years, reflecting shifts in the food and drink business landscape.
Earlier in 2023, Dole sought to transfer its fruit and vegetable operations in the U.S. to a subsidiary of local competitor Chiquita Holdings for $293 million. However, this deal faced regulatory hurdles from the U.S. Department of Justice, which ultimately stalled the sale, prompting Dole to cancel the agreement.
The fresh vegetables division specializes in processing and selling whole produce items such as iceberg, romaine, and leaf lettuce, in addition to cauliflower, broccoli, and salad kits. This division includes agricultural operations and three processing plants across the United States, employing more than 3,000 individuals.
As of March 31, the fresh vegetables division reported current assets held for sale amounting to $318.8 million and current liabilities valued at $206.4 million, as noted in the company’s first-quarter results.
Derek Yurosek, managing director of Arable Capital Partners, commented: “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.” This acquisition comes on the heels of Arable’s earlier purchase of Dole’s 65% stake in its North American Progressive Produce business for $125.2 million.
