Chiquita Brands to Merge With Ireland’s Fyffes to become the world’s largest banana company, with sales of more than 160 million boxes annually

March 13, 2014 Leave a comment

Chiquita Brands to Merge With Ireland’s Fyffes

Fruit Companies Agree to All-Stock Deal Valued Around $1.1 Billion

ED BALLARD

March 10, 2014 4:33 a.m. ET

Fruit companies Fyffes

FFY.DB +23.60% PLC and Chiquita Brands International Inc.CQB -0.18% said Monday they have agreed to combine in an all-stock transaction valued at about $1.07 billion.

Chiquita shareholders would own 50.7% of the new company, ChiquitaFyffes, which would have $4.6 billion in annual revenue and 32,000 employees globally, Dublin-based Fyffes said.

The companies said that on the basis of current volumes, ChiquitaFyffes would become the world’s largest banana company, with sales of more than 160 million boxes annually.

The transaction is expected to be completed this year.

“We will maintain our brands, all of which are valued by both customers and consumers,” said Ed Lonergan, Chief Executive of Chiquita, based in Charlotte, N.C. “The combined company will also be able to provide customers with a more diverse product mix and choice,” he added.

David McCann, Fyffes’s executive chairman, will become chief executive of the new company, while Mr. Lonergan will serve as chairman, Fyffes said.

Fyffes separately posted Monday a 9.3% increase in net profit for 2013 of 26.1 million euros ($36.2 million), up from EUR23.9 million a year earlier, as revenue rose 6.3% to EUR1.08 billion. It increased its full-year dividend to 2.17 euro cents from 2.07

 

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