US-based fresh produce company Chiquita Brands International has said that it has completed the previously announced sale of its banana-producing and port operations in Colombia to Invesmar, the holding company of Banacol, a Colombia-based producer and exporter of bananas and other fruit products.
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Chiquita said copies of the sale agreement and other related documents were filed in a Form 8-K with the US Securities and Exchange Commission on 14 June 2004.
When announcing the deal earlier this month, Chiquita said it would receive around US$28.5m in cash and $15m of notes and deferred payments for the operations under the terms of the deal, and the buyer will also assume around $8m of pension liabilities.
Chiquita also said it expects to record an after-tax loss on the transaction of approximately $5m, which takes into account two long-term fruit purchase agreements. The estimated loss may increase somewhat as a result of the recent industry-wide strike of banana workers in the Uraba region of Colombia, which was settled on 10 June. The company said additional costs cannot be estimated until the farms have been inspected.
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