Dole is one of the world’s largest fresh produce companies, being the market leader for bananas in North America and the third-largest supplier in Europe, while it occupies the second- and third-largest positions for pineapples in North America and Europe respectively.
The Dole management team will continue to operate the business.
For the 12 months ended October 7 2017, Dole generated revenue of $4.5bn (£3.2bn) and adjusted pre-tax profit of $237M (£167.8M). The transaction consideration for the 45% interest implies a Dole enterprise value of around $2bn (£1.4bn).
As part of the mutual agreement, Total Produce will share governance rights.
“I believe this investment by Total Produce in Dole is the single most positive step in our company’s history,” said Carl McCann, chairman of Total Produce. “It places Total Produce at the forefront of our industry and we anticipate it will create significant additional value for shareholders in the years ahead.”
David Murdock, chairman and owner of Dole, said: “With great pride I announce the creation of a partnership between Dole Food Company and Total Produce.
“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.”