Dole has sold its fresh vegetables division in the US to Arable Capital Partners, following a previous unsuccessful attempt.
In a joint statement, the New York-listed group said it had sold the unit to the holding company of packaged salads maker Organicgirl, which sits in Arable’s portfolio, for $140m.
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Carl McCann, executive chairman of Dole, said the “combination with Organicgirl will create a strong platform to realise operational efficiencies and expand the overall offering and service to customers and consumers”.
McCann added that the sale will “enable us to further concentrate our efforts and investments on our core business activities”.
Dole confirmed it will retain its facilities in Huron, California, and Yuma, Arizona following the transaction.
The company had been trying to sell its fresh vegetables arm for over two years.
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By GlobalDataIn 2023, the group tried to sell its fruit and veg business in the US to a subsidiary of local peer Chiquita Holdings for $293m.
However, the transaction had been subject to regulatory approval from the US Department of Justice, which seemingly was not granted, prompting Dole to call off the sale.
The fresh vegetables division focuses on the processing and sale of whole produce such as iceberg, romaine, and leaf lettuce, along with cauliflower, broccoli, and salad kits.
The business has agricultural operations and three processing plants across the US, employing more than 3,000 people.
As of 31 March, the fresh vegetables business’ current assets held for sale amounted to $318.8m, while current liabilities in the unit held for sale were valued at $206.4m, the company said it its first quarter results.
Derek Yurosek, managing director of Arable Capital Parners, said: “With strong brands and presence across multiple channels, as well as strong leadership, Dole Fresh Vegetables is an outstanding addition to our portfolio that is positioned for continued growth and success.”
Arable also purchased assets from Dole in February last week. The fresh produce major agreed to sell its 65% stake in its North American Progressive Produce business to Arable for a sum of $125.2m.
