Dole Food Company president and CEO David DeLorenzo will leave the US-headquartered produce marketer to join Japan's Itochu Corporation following the sale of Dole's Asia fresh and worldwide packaged foods businesses to the Japanese trading company for US$1.69bn, Dole announced on Thursday (6 December).
DeLorenzo will head up these business units at Itochu and step down from Dole's board.
Meanwhile, Dole chairman David Murdock will return to the dual role of chairman and CEO. And Michael Carter, executive vice president, general counsel and corporate secretary, will assume the added role of president and COO, with all operating and corporate functions reporting to him.
In addition, Keith Mitchell, current chief financial officer (CFO) of Dole's North American Fresh Fruit Business, will become the company's new CFO. Beth Potillo, current treasurer, and Yoon Hugh, current controller and chief accounting officer, will both become senior vice presidents with added responsibilities.
Joseph Tesoriero, current executive vice president and CFO, will leave Dole in connection with the Itochu sale transaction.
In mid-September Dole agreed to sell its Asia fresh and worldwide packaged foods businesses to Itochu for US$1.69bn in cash.
Dole said on Thursday that its stockholders had approved the sale of the businesses to Itochu at a special meeting at the company's headquarters in Westlake Village, California.
The company said the transaction had already received required regulatory approval in six of the seven reviewing countries, and that both Dole and Itochu were continuing to work towards consummating the sale by 31 December, subject to final regulatory approval from China.
The sale will reduce Dole's operations to two lines of fresh produce businesses – fresh fruits and fresh vegetables, and shrink the company's annual revenue to approximately US$4.2bn, the firm said in a statement. Its fresh fruit business line will be cut by 30 per cent, it said.
Dole said it would put in place a new capital structure at the time of consummation of the sale, which together with the proceeds from the sale transaction, would be used to pay off existing debt and provide funding for transaction-related taxes and expenses, and the possible settlement of some or all of Dole's long-term Japanese yen hedges.
Commenting after the Thursday stockholder meeting, Murdock said: 'While Dole's fresh produce business will be significantly smaller and is continuing to experience declining earnings in a continued difficult ecomomic environment both in the US and in Europe, I am very optimistic about the long-term future of Dole and its prospects.
'We will remain an industry leader in the sourcing, distribution and marketing of bananas, pineapples and other tropical fruits, packaged salads, fresh-packed vegetables and fresh berries,' he said.
'With the planned substantial reduction in debt and the eventual lower cost structure from right-sizing our organisation, Dole will be well positioned to pursue growth opportunities within the fresh produce industry.'
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