Key Takeaways
- Dole plc has completed the sale of its Fresh Vegetables Division to og Holdco LLC, parent company of organicgirl and a portfolio company of Arable Capital Partners
- The deal totals $140 million: $90 million in cash, a $50 million seller note, and a potential $10 million earn-out
- Dole will retain its facilities in Huron, California, and Yuma, Arizona
- The Fresh Vegetables Division includes the processing and sale of lettuce, broccoli, celery, salad kits, and more, with 3,000+ employees across the U.S.
- The transaction aligns with Dole’s strategy to focus on its core business activities
Dole Finalizes Divestiture of Fresh Vegetables Division
Strategic transaction supports core business realignment
Dole plc (NYSE: DOLE) has officially completed the sale of its Fresh Vegetables Division to og Holdco LLC, the parent company of organicgirl and a portfolio company of Arable Capital Partners. The deal, valued at $140 million, includes $90 million in cash, a $50 million seller note, and an additional $10 million potential earn-out. The cash portion is subject to standard adjustments related to working capital, cash, and debt.
The sale is described by Dole as a strategic milestone that allows the Group to streamline its operations and intensify its focus on core business areas.
Overview of the Divested Business
Fresh Vegetables Division includes salad kits, whole produce, and 3,000+ employees
The Fresh Vegetables Division encompasses Dole’s U.S.-based operations related to the processing and sale of whole and pre-packaged produce, including iceberg, romaine, leaf lettuce, cauliflower, broccoli, celery, asparagus, green onions, sprouts, and cabbage. It also includes salads and salad kits distributed across retail and foodservice channels.
The division comprises three processing plants and agricultural operations spread across the U.S., employing more than 3,000 workers. As part of the transaction, Dole will retain its facilities in Huron, California and Yuma, Arizona.
Remarks from Dole and Arable Capital Partners
Leadership sees growth opportunity in combined operations
“We are pleased to announce the sale of our Fresh Vegetables Division to Arable Capital,” said Carl McCann, Executive Chairman of Dole plc. “A combination with organicgirl will create a strong platform to realize operational efficiencies and expand the overall offering and service to customers and consumers.”
Derek Yurosek, Managing Director at Arable Capital Partners, added: “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.”
Focused Forward Strategy for Dole
Reinvestment planned in core segments
The divestiture aligns with Dole’s broader corporate strategy to sharpen its operational focus. The company aims to redirect resources and investments into its core businesses, which include tropical fruits and value-added produce offerings.
Dole acknowledged the contributions of the Fresh Vegetables team, expressing appreciation for their dedication and commitment over the years.
With the transaction now completed, Dole and Arable Capital will proceed with integrating the Fresh Vegetables Division and organicgirl to strengthen their combined presence in the North American fresh produce market.
