Tags: Cutrale-Safra | Chiquita | Brazil | Banana

Brazil's Cutrale-Safra to Acquire Chiquita in Deal Valued at $1.3 Billion

Monday, 27 Oct 2014 08:28 AM

Chiquita Brands International Inc. has agreed to sell itself to two Brazilian companies for approximately $681 million, just days after the fresh produce company's shareholders rejected plans to merge with Irish fruit importer Fyffes.

Chiquita said Monday that it will be acquired by the investment firm Safra Group and the juice company Cutrale Group for $14.50 per share, a 2 percent premium to its Friday closing price of $14.16.

The companies put the transaction's value at about $1.3 billion, including the assumption of Chiquita's debt.

Chiquita's board unanimously approved the deal, which is targeted to close by the end of the year or in early 2015. Chiquita will become a subsidiary of the Cutrale-Safra group once the transaction is complete.

On Friday Chiquita and Fyffes PLC gave notice to terminate their proposed merger agreement after Chiquita's stockholders didn't approve a revised transaction agreement between the two companies during a special shareholders meeting. The proposed agreement with Fyffes was an all-stock deal, with the companies planning to incorporate in Dublin to take advantage of lower tax rates. Chiquita is based in Charlotte, North Carolina.

Once Chiquita's shareholders rejected the proposed deal with Fyffes, Chiquita said that it planned to enter talks with Safra and Cutrale on their competing offer of $681 million. Chiquita had received the $681 million bid from the pair last week after previously rejecting offers from the duo. The prior offer from Safra and Cutrale was $14 per share. They had bid $13 per share in August.

Shares of Chiquita added 18 cents to $14.34 in morning trading.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 
1Like our page
2Share
Companies
Brazilian juice maker Grupo Cutrale and investment firm Safra Group agreed on Monday to acquire U.S.-based banana producer Chiquita Brands International Inc in a deal valued at $1.3 billion, including debt.
Cutrale-Safra, Chiquita, Brazil, Banana
260
2014-28-27
Monday, 27 Oct 2014 08:28 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved