US/JAPAN: Dole in talks to sell packaged food arm to Itochu
- Dole in "advanced" talks with Itochu
- Announced strategic review in May
- No deal yet
Dole in advanced negotiations but no deal yet
US food group Dole Food Co. has admitted it is in talks to sell two units, including its packaged food arm, to Japanese conglomerate Itochu Corp.
Dole in May launched a review of its operations to "enhance shareholder value". It said today (12 September) the companies were in "advanced negotiations" over the sale of its packaged food and Asian fresh businesses.
The company said it was responding to "market rumours" and insisted "no definitive agreements" had been signed.
"Dole continues in discussions with several other parties regarding these assets and others," it added.
In July, Dole reported lower half-year underlying profits. It said comparable income from continuing operations was US$83.8m for the six months to 16 June, down from $135.1m a year earlier. EBIT before discontinued operations was $152.1m, against $173.5m the previous year.
Revenues were $3.35bn. A year earlier, Dole booked revenue of $3.6bn.
In 2011, Dole made net income from continuing operations of $42m, compared to a loss of $34m in 2010.
Click here for our analysis of Itochu's interest in Dole's assets.
Dole Food Company, Inc. Responds to Market Rumors
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Sep. 12, 2012-- Dole Food Company, Inc. (NYSE:DOLE) announced in response to market rumors, that, as part of its previously announced strategic review, it is in advanced negotiations with ITOCHU Corporation for the possible sale of its Packaged Foods and Asia Fresh businesses. No definitive agreements have been signed at this time, and Dole continues in discussions with several other parties regarding these assets and others.
ABOUT DOLE FOOD COMPANY
DOLE is the world’s largest producer and marketer of high-quality fresh fruit and fresh vegetables, and is the leading producer of organic bananas and producer/shipper of organic pineapples. DOLE markets a growing line of packaged and frozen fruit and is a produce industry leader in nutrition education and research. For more information, please visit www.dole.com. For more information on DOLE’s sustainability initiatives, please visit www.dolesustainability.com.
Original source: Dole Food Co.
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