Dole Food fulfils EC condition for Total Produce stake acquisition

US-based Dole Food has completed the sale of two Saba Fresh Cuts businesses, fulfilling a condition put in place by the European Commission (EC) in order for Irish fresh fruit and veg producer Total Produce’s to acquire a 45% stake in the US company.

Total Produce stated that Dole Food has sold the Saba Fresh Cuts salad businesses in Sweden and Finland to Bama International, a subsidiary of Norway’s fruit and veg distributor Bama Gruppen.

The two facilities are involved in the production of washed and ready-to-eat salads.

Bama International has its headquarters in Oslo, Norway.

Total Produce said: “The sale of Saba Fresh Cuts AB was a condition of the European Commission’s approval of the acquisition by Total Produce of a 45% equity stake in Dole in July 2018.”

Total Produce acquired the stake in Dole Foods for a consideration of $300m (€262m).

In February 2018, the Irish firm entered an agreement with Dole Food to acquire the stake as part of a strategy to expand its footprint in the global market.

Total Produce said that it intends to retain the existing Dole management team after completion of the deal, where David Murdock will continue to be chairman of the company and Total Produce chairman Carl McCann will serve as vice-chairman.

Dole Food markets fresh produce, including fresh fruit and vegetables.

The Irish company is expected to exercise the right to purchase all shares in Dole Food within five years.

Investment bank and financial services company Houlihan Lokey advised Dole in the transaction.