CHARLOTTE, NC - After months of negotiations, Chiquita has announced a definitive merger agreement with the Brazilian-based Cutrale-Safra groups. Pursuant with the agreement, Cutrale-Safra will purchase the entirety of Chiquita's outstanding common shares for $682 million in cash, or $14.50/share, a 33.8% premium to Chiquita’s closing price on the last day of trading prior to the announcement of its agreement with Fyffes on March 7, 2014.
“We are pleased to make this long-term investment in Chiquita, one of the leading fresh produce companies in the world,” Cutrale-Safra shared in an official statement. “Cutrale-Safra is committed to supporting Chiquita as it continues to build out the strength of its franchises. To ensure Chiquita has the premier and most sustainable platform in its sector, Chiquita will be able to access Cutrale-Safra's substantial experience in all aspects of the fruit and juice value chain and extensive financial expertise. Chiquita will be able to take advantage of the vast knowledge of the Cutrale Group in farming, processing, technology, sourcing, distribution, logistics and marketing.”
“This transaction demonstrates our Board’s commitment to maximizing shareholder value and underscores the significant progress Chiquita has achieved over the past couple of years in our financial and operational performance,” agreed Ed Lonergan, Chiquita’s Chief Executive Officer. “We are pleased with the substantial value and significant all-cash premium we have delivered through this exciting agreement with the Cutrale Group and the Safra Group...Chiquita and Fresh Express are some of the most recognizable brands in the sector, and we are confident that Cutrale-Safra will be good stewards of the business moving forward.”
According to a press release, including the assumption of Chiquita's net debt, the overall agreement is valued at roughly $1.3 billion. The transaction is expected to close in late 2014 or early 2015.
Congratulations on coming to this exciting merger agreement, Chiquita, Cutrale and Safra!
