Fresh produce group sells 65 per cent equity stake to PTF Holdings, part of Arable Capital Partners
Dole has today (28 February) announced that it has reached an agreement to sell its 65 per cent equity stake in Progressive Produce to PTF Holdings, the parent company of Pacific Trellis Fruit and a portfolio company of Arable Capital Partners.
Dole said that it would receive gross cash proceeds of US$120.25m from the sale of the Los Angeles-based group.
Progressive Produce is a grower, packer, and distributor of conventional and organic produce to the retail, wholesale and foodservice sectors in the US and Canada.
Founded in 1967, Dole said the company was one of California’s premier produce companies with annual sales in excess of US$400m.
It is a subsidiary of Dole plc and is part of the diversified fresh produce – Americas and rest of world reporting segment.
Post the completion of the transaction, the existing management team of Progressive Produce will remain with the enlarged business of Progressive Produce and Pacific Trellis Fruit and retain an ownership stake, Dole confirmed.
The transaction is expected to close in March 2024, subject to the satisfaction of customary closing conditions.
Net proceeds from the sale received by Dole are currently expected to be used primarily for debt reduction, it outlined.
“We are pleased to announce the sale of our equity interest in Progressive Produce to Arable Capital Partners,” said Dole executive chairman Carl McCann. ”Since our initial investment in 2016, the business has been a strong performer within our group.
”We would like to thank the current and former management teams for their dedication, passion, and significant contributions to the growth of this business over the time that we have been partners,” he said. ”We wish the executive team and their new majority owners continued success for the future.
”The proceeds from this sale will further strengthen our financial position and enhance the group’s focus on, and investments in, our core activities,” McCann added.
Derek Yurosek, managing director of Arable Capital Partners, said he was “thrilled” with the opportunity to partner with Progressive Produce.
”The company is a leader in top produce categories and has an impressive and diversified customer base, as well as an exceptional team,” he noted.
”We look forward to helping Progressive Produce continue to deliver outstanding products and service to its retail, wholesale, and foodservice customers.
While Progressive Produce and Pacific Trellis Fruit will continue to operate independently, we are excited about the chance for them to work together to continue to grow their businesses and ultimately bring even greater value to their grower partners and customers,” Yurosek added. ”This is a fantastic outcome for everyone involved.”
