BRAZIL/US: Juice maker Cutrale launches Chiquita takeover bid
Chiquita has lined up merger with Ireland-based peer Fyffes
Cutrale and Safra have put together an offer for Chiquita worth US$13 a share, a bid they said was "a highly compelling premium" to how the market values the US produce group's proposed transaction with Fyffes.
The bidders said their offer was a 29% premium on the planned deal, based on Chiquita's closing share price of US$10.06 on Friday.
In a letter written to Chiquita chairwoman Kerrii Anderson and Ed Lonergan, the company's president and CEO, Cutrale and Safra said they could close their transaction before the end of the year.
The companies said that timetable was "within the same timeframe" Chiquita had indicated for the Fyffes deal "but without the execution risk and uncertainty inherent in that transaction".
"The Cutrale and Safra Groups complement one another in this proposed endeavor, providing Chiquita a backdrop of world-class, established industry expertise and significant financial resources," the companies wrote.
"The Cutrale Group's global business operations include oranges, apples, peaches, lemons and soybeans. This platform offers Chiquita extensive experience in all aspects of the fruit and juice value chain. After the acquisition, Chiquita will benefit from the vast experience and knowledge of farming, processing, technology, sourcing, distribution, logistics, and marketing of the Cutrale Group."
The bidders pointed to Safra's assets under management of over $200bn and aggregate stockholder equity of around $15.3bn. The investment firm, they said, operates banks and invests in other businesses across North and South America, Europe, the Middle East and Asia.
"Throughout these markets, Safra has deep, long-term relationships with major market participants, enabling it to greatly enhance the value of the competitive position of the businesses in which it invests," they added.
Shares in Chiquita had jumped 30.91% to US$13.17 at 11:25 ET. Shares in Fyffes had dropped 13.93% to EUR0.92.
Chiquita and Fyffes announced their deal in March. The US group is set to own around 50.7% of what would become ChiquitaFyffes.
Fruit and Vegetable Canning, Including Juices, Sauces, Soups and Dried & Pickled Vegetables, Industry (U.S.): Analytics, Extensive Financial Benchmarks, Metrics and Revenue Forecasts to 2021, NAIC 311
Fruit and Vegetable Canning, Including Juices, Sauces, Soups and Dried & Pickled Vegetables, Industry (U.S.): Analytics, Extensive Financial Benchmarks, Metrics and Revenue Forecasts to 2021, NAIC 311...
Vion Food Group has confirmed the appointment of Greenyard Foods COO Francis Kint as its new chief executive....
The analysts in this report forecast the Global Non-GMO Food market will grow at a CAGR of 15.92 percent over the period 2013-2018. The report covers the present scenario and the growth prospects of t...
Canadean's "Total Produce plc - Company Capsule" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts, major products and ser...
Natural food is a category of food that is minimally processed and is free of synthetic preservatives. It does not contain genetically modified organisms, high fructose corn syrup or artificial sweete...
- How Danone aims to meet its 2020 objectives
- Greencore's food-to-go focus paying dividends
- Interview: Ritter sees growth potential in US, EU
- Mars rice policy more than crop-ticking exercise
- Will Belvita win at breakfast in China? - analysis
- Pinnacle to buy Boulder Brands in $975m deal
- Genius Foods buys UK gluten-free firm Chapel Foods
- Maple Leaf Foods to cut over 400 jobs
- Nestle combats Thai seafood supply forced labour
- Greencore profits lifted by on-the-go food focus