$1.3bn deal: Cutrale, Safra to buy banana giant

NEW YORK: US banana giant Chiquita has agreed to be bought by Brazilian juice exporter Cutrale Group and investment bank Safra Group in a $1.3 billion deal, the companies said.
The acquisition will propel Cutrale, which claims a one-third share of the $5 billion global orange juice market, into the top ranks in the global fruit and vegetable trade.
The deal came after Chiquita shareholders rejected on Friday a separate plan to merge with Irish fruit rival Fyffes, creating the world’s largest banana trader.
Chiquita’s board of directors approved the Cutrale-Safra offer of $14.50 per share in cash and the assumption of its debt, the companies said.
It was the Brazilian group’s third offer, after the Chiquita board rejected the $13 bid in August and the raised $14 offer in mid-October.
“We are pleased to make this long-term investment in Chiquita, one of the leading fresh produce companies in the world. It has impressive brand loyalty and recognition through its Chiquita and Fresh Express brands, providing the company with a strong competitive edge in the growing worldwide demand for high-quality fresh fruits and salads,” the Cutrale-Safra group said.
Ed Lonergan, Chiquita’s CEO, said the deal “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.”
Chiquita will become a wholly owned subsidiary of the Cutrale-Safra group and remain incorporated in New Jersey.
The transaction, subject to regulatory approvals, is expected to be completed by the end of the year or early 2015.