Chiquita announced on Tuesday that is to sell its German distribution business Atlanta AG to Univeg. The sale is going through for net proceeds of at least $85 million at current exchange rates. The deal is subject to review by EU competition authorities and is expected to be compeleted by the end of the second quarter. The parties also entered a long-term strategic agreement in which Atlanta will continue to serve as Chiquita's preferred supplier of banana ripening and distribution services in Germany and Austria.

"We are pleased to conclude yet another important step in the execution of our profitable growth strategy," said Fernando Aguirre, chairman and chief executive officer of Chiquita Brands International. "This transaction will enable us to increase our focus on providing branded, healthy, fresh foods to consumers worldwide, while ensuring that we continue to provide reliable, high-quality ripening and distribution of Chiquita bananas in the German and Austrian markets."

The sale does not come as a surprise since Chiquita had already announced in October 2007 that it was seeking strategic alternatives for Atlanta and the 17 distribution centres it operates in Germany and Austria. Chiquita is now likely to use proceeds from the sale to reduce its debt. The company said that with $1.2 billion in revenue from non-Chiquita products in 2007, Atlanta's operating results have not been significant to its overall operating income in recent financial periods.

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