Following the announcement that the European Commission has approved Total Produce's acquisition of a 45 per cent equity stake in Dole Food Company for US$300m, leading figures from both companies have expressed their enthusiasm over the deal.
'We are delighted to conclude this very substantial transaction with David Murdock who has been an inspirational and visionary leader since he acquired a majority shareholding in Dole in 1985,' said Carl McCann. 'Dole is one of the world's foremost fresh produce companies and we look forward with great enthusiasm to working very closely together with David and his excellent management team to continue to develop the business in the future.'
Murdock added that the future was an exciting one for Dole and Total Produce.
'They have a long and successful history in the produce industry, and I have complete confidence that as the premier produce brand, Dole will be able to tap that expertise in growing our position worldwide,' he outlined.
Transaction structure
According to a joint statement, Total Produce's investment in Dole and its financial contribution will be treated as a joint venture and accounted for via the equity method under IFRS in the accounts of Total Produce following completion.
Once closed, Total Produce and Murdock will have balanced governance rights with respect to Dole, while the board of directors of Dole will comprise six members, three of which are to be appointed by Murdock (Janine Peck, Roberta Wieman and Murdock himself) and three appointed by Total Produce (Carl McCann, Rory Byrne and Jimmy Tolan).
Murdock will continue as chairman of Dole and McCann will be appointed vice-chairman. Johan Lindén will remain Dole's president and CEO, and the management team will also remain in their current roles.
