Fruit and vegetable producer Dole has sold its fresh vegetables division to an investment firm’s subsidiary, company officials announced Tuesday.
Og Holdco LLC, the parent of Arable Capital Partners’ Organicgirl LLC, bought the business for $140 million, Dole executives said, including $90 million in cash, a $50 million seller note and a potential earn-out worth $10 million.
The fresh vegetables segment includes salads and salad kits, along with the processing and sale of whole produce including iceberg, romaine and leaf lettuce, as well as cauliflower, broccoli, celery, asparagus, artichokes, green onions, sprouts, radishes and cabbage.
The business also comprises agricultural operations at three processing plants with a total staff of more than 3,000. Dole said that it will retain facilities in Yuma, Arizona, and Huron, California.
“A combination with Organicgirl will create a strong platform to realize operational efficiencies and expand the overall offering and service to customers and consumers,” Dole Executive Chairman Carl McCann said in the announcement. “The completion of this sale represents an important strategic milestone for the group and will enable us to further concentrate our efforts and investments on our core business activities.”
Arable Managing Director Derek Yurosek added that the business offers “strong brands and presence across multiple channels, as well as strong leadership.”
