European fresh produce distributor Total Produce has entered into a binding agreement that would see it acquire a 45% equity stake in the Dole Food Company from its chairman and chief executive David Murdock for a total cash consideration of $300m.
Dole, one of the world's largest fresh produce companies, generated revenues of $4.45bn and an adjusted EBITDA of $237m in the twelve months ended 7 October 2017, meaning the stake implied an enterprise value of approximately $2bn.

Dole's management team will continue to operate the business as before, however, Total Produce will share governance rights, including equal board representation.

Total Produce has fully committed acquisition financing in place to secure funding of the transaction.

Total expected the transaction to generate low double-digit adjusted earnings per share accretion in the first full fiscal year post closing.

Carl McCann, chairman of Total Produce, said, "We are greatly honoured that David, a good friend of my late father Neil, my predecessor as Chairman, has chosen Total Produce to be his partner. I look forward with great enthusiasm to working very closely together with David and his superb management team to continue to expand the business in the future."

"I believe that this investment by Total Produce in Dole is the single most positive step in our company's history. It places Total Produce at the forefront of our industry, and we anticipate it will create significant additional value for shareholders in the years ahead," he added.

As of 1200 GMT, shares had grown 5.77% to 220.00p.

Related share prices
Total Produce (TOT) share price