Cutrale-Safra finalises merger with Chiquita for $682m

Brazilian juice maker Grupo Cutrale and investment firm Safra Group will takeover banana company Chiquita Brands International for $682m.

The agreement received a unanimous approval of Chiquita’s board of directors, and involves Cutrale-Safra acquiring all of Chiquita’s outstanding common shares for $14.50 per share in cash.

With the merger, Chiquita will work with Cutrale Group, a leading fresh produce company, and global financial services company the Safra Group. Including debt, the value of the deal amounts to $1.3bn.

Speaking about the merger’s future, Cutrale-Safra said in a statement: "To ensure Chiquita has the premier and most sustainable platform in its sector, Chiquita will be able to access Cutrale-Safra’s substantial experience in all aspects of the fruit and juice value chain and extensive financial expertise. Chiquita will be able to take advantage of the vast knowledge of the Cutrale Group in farming, processing, technology, sourcing, distribution, logistics and marketing.

"Furthermore, the Safra Group’s highly regarded global reputation for business and investment success, its knowledge of market conditions around the world, and its long-term relationships internationally all can add value to Chiquita and further enhance its prospects."

Chiquita chief executive officer Ed Lonergan further added: "This transaction demonstrates our board’s commitment to maximising shareholder value and underscores the significant progress Chiquita has achieved over the past couple of years in our financial and operational performance.

"Through the due diligence process, we developed a tremendous amount of respect for the entire Cutrale-Safra team, especially their knowledge and understanding of global agribusiness, shipping and manufacturing."

The deal is expected to close by the end of this year or early 2015 and is subject to customary closing conditions and regulatory approvals.