Cutrale-Safra completes acquisition of Chiquita for $681m

Brazilian juice maker Grupo Cutrale and investment firm Safra Group have completed the acquisition of banana company Chiquita Brands International for $681m.

Based in Charlotte, North Carolina, Chiquita agreed to be acquired by Safra-Cutrale for $14.50 a share.

The companies placed the transaction’s value at around $1.3bn, including the assumption of Chiquita’s debt.

Safra and Cutrale said that the tender offer for all of Chiquita’s outstanding stock, which expired on Monday, was completed by affiliate Cavendish Acquisition. Approximately 84.5% of Chiquita’s outstanding shares were validly tendered in the offer.

The acquisition sees Cutrale, which is run by ‘Orange King’ Jose Luis, enter the banana industry. Safra that is controlled by banking billionaire Joseph Safra, who has a total assets of more than $200bn.

Speaking on the acquisition, the companies said in a joint statement: "The expertise of the Cutrale Group, one of the world’s most highly regarded agribusiness and juice companies, and the extensive global relationships of the Safra Group will be important strategic differentiators for Chiquita.

"We are confident this combination will benefit customers and consumers of the Chiquita and Fresh Express brands around the world. We will focus with Chiquita on strengthening its businesses and brands, including Chiquita bananas and Fresh Express salads and snacks, and enable further success in this very competitive environment through investments in the brands and operations."

As a part of the deal, Chiquita’s bananas and Fresh Express packaged salads will be combined with Cutrale’s oranges, apples and peaches, according to Wall Street Journal.

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Image: Chiquita is one of the US’s leading banana providers. Photo: courtesy of Ambro/freedigitalphotos.net.