UPDATE, 9/20/12, 9:50 a.m. EDT: The names of Squire Sanders partners advising Itochu in connection with this transaction have been added in the fourth paragraph.
Dole Food Company Inc. said Monday that it has agreed to sell its global packaged foods and its Asian produce businesses to Japanese trading company Itochu Corporation for $1.69 billion in cash.
Earlier this summer, Westlake Village, Californiabased Dole said it was considering selling or spinning off its packaged foods business as part of a strategic review and that it could pair that business with its Asian operations in any potential sale. After confirming market rumors that it was in talks with Itochu last week, Dole said Monday the sale would raise capital to be used for debt reduction and restructuring purposes. Bloomberg has reported that Dole’s earnings from bananas salesone of the company’s main productshave suffered as a result of inconsistent demand.
Dole’s packaged foods business produces such items as canned fruit and juices, as well as fruit in plastic cups, jars, and pouches. The Asian produce unit operates two canneries in Thailand and one in the Philippines. The two businesses combined earned a total of $2.5 billion in revenue in 2011.
Squire Sanders is advising Itochu on the acquisition. The firm’s team is led by Tokyo-based corporate partners Steven Doi and Ken Kurosu.
Eric Laptook serves as Itochu’s general counsel.
Dole is being advised by its frequent counsel, Gibson, Dunn & Crutcher. The firm has represented Dole in a variety of past litigation matters, as well as in connection with the company’s 2009 initial public offering. The firm also advised Dole’s board of directors when the company was bought by current CEO David Murdock in 2003. Gibson Dunn’s team on this sale includes corporate partner Peter Wardle, tax partner Dora Arash, and compensation and benefits partner Sean Feller, all in Los Angeles, as well as Palo Alto corporate and intellectual property partner David Kennedy. Los Angelesbased corporate of counsel William Wortmann is also advising.
C. Michael Carter is Dole’s general counsel.
