DUBLIN --- Dole plc announced that it has reached an agreement to sell its 65% equity stake in Progressive Produce LLC to PTF Holdings LLC, the parent company of Pacific Trellis Fruit LLC.
PTF Holdings is a portfolio company of Arable Capital Partners LLC. Dole will receive gross cash proceeds of $120.25 million from this sale.
Progressive Produce, located in Los Angeles, is a grower, packer and distributor of conventional and organic produce to the retail, wholesale and foodservice sectors in the U.S. and Canada. Founded in 1967, the company is one of California’s premier produce companies with annual sales in excess of $400 million.
Progressive Produce is a subsidiary of Dole plc and is part of the Diversified Fresh Produce – Americas and Rest of World reporting segment.
After the completion of this transaction, the existing management team of Progressive Produce will remain with the enlarged business of Progressive Produce and Pacific Trellis Fruit and retain an ownership stake.
The transaction is expected to close in March 2024, subject to the satisfaction of customary closing conditions. Net proceeds from the sale received by Dole are currently expected to be used primarily for debt reduction.
Carl McCann, executive chairman of Dole plc, said:
“We are pleased to announce the sale of our equity interest in Progressive Produce to Arable Capital Partners. Since our initial investment in 2016, the business has been a strong performer within our group.
We would like to thank the current and former management teams for their dedication, passion, and significant contributions to the growth of this business over the time that we have been partners. We wish the executive team and their new majority owners continued success for the future.
The proceeds from this sale will further strengthen our financial position and enhance the group’s focus on, and investments in, our core activities.”
Derek Yurosek, managing director of Arable Capital Partners, added:
“Arable is thrilled about the opportunity to partner with Progressive Produce. The company is a leader in top produce categories and has an impressive and diversified customer base, as well as an exceptional team. We look forward to helping Progressive Produce continue to deliver outstanding products and service to its retail, wholesale, and foodservice customers.
While Progressive Produce and Pacific Trellis Fruit will continue to operate independently, we are excited about the chance for them to work together to continue to grow their businesses and ultimately bring even greater value to their grower partners and customers. This is a fantastic outcome for everyone involved.”
