Dole Food Co. is looking to float on the stock market, four years after chairman and owner David Murdock took the the US-based produce group private.
The company announced today (25 April) it had filed a registration statement with the US Securities and Exchange Commission “relating to a proposed initial public offering of shares of its common stock”.
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However, the number of shares Dole plans to offer, at what price and the stock exchange on which the company will apply to float “have not yet been determined”, it added.
The 94-year-old Murdock first took Dole private in 2003 after rescuing the fruit and vegetable supplier from bankruptcy in 2001.
Murdock re-listed Dole in 2009, before buying back the business in 2013. Some investors thought the price Murdock offered was too low, sued and won an additional payment per share.
” Since going private, we have undertaken significant cost savings measures and divestment of non-core assets,” the SEC filing read. “We have also made significant improvements across our global supply chain, particularly in the form of farm acquisitions and the delivery of three new West Coast vessels. The acquired farms have increased our owned acreage by approximately 20%—primarily in Latin America. This increase in company-produced volume has helped us to improve our negotiating position with our independent growers. In addition, the new acquisitions have added to our overall product diversification strategy, as they include organic pineapple farms in Costa Rica and a diversified fresh fruit farm in Chile.
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By GlobalData“We have successfully brought three new West Coast vessels on-line, which increased our capacity and market share and minimised our shipping costs. By maintaining control of the supply chain, we are better equipped to protect Dole products from handling damage, maintain optimal shipping temperatures and better control the timing of our product distribution, allowing us to consistently provide the finest, high-quality fresh fruit and vegetable products to our retail, wholesale and foodservice customers around the world. These investments have been critical in preparing us to withstand market turbulences and headwinds, optimising our competitive position within the industry.”
Dole added: “We believe our leading brand position and integrated supply chain create a reliable business model that will deliver consistent, strong financial results.”
In 2016, Dole enjoyed revenue of US$4.51bn, compared to $4.64bn the previous year, the filing shows.
It generated operating income of $21.4m, against $55.6m in 2015. Dole ran up a net loss of $23m, versus $12.2m a year earlier, thanks in part to a higher tax bill.
Dole also gave an adjusted EBITDA figure of $215.6m, which compared to $234.7m the previous year.
