Dole Transitions to New Ownership: Fresh Vegetables Division Sold to Arable Capital

In a significant strategic move, fruit and vegetable producer Dole has officially sold its fresh vegetables division to a subsidiary of an investment firm, as announced on Tuesday.

Details of the Acquisition

Og Holdco LLC, the parent company of Arable Capital Partners’ Organicgirl LLC, has acquired the fresh vegetables segment for a total of $140 million. This deal includes $90 million in cash, a $50 million seller note, and a potential earn-out of $10 million, according to Dole executives.

What’s Included in the Fresh Vegetables Segment

The fresh vegetables division comprises a variety of products, including:

• Salads and salad kits
• Whole produce such as iceberg, romaine, and leaf lettuce
• Cauliflower, broccoli, celery, asparagus, artichokes, green onions, sprouts, radishes, and cabbage

Additionally, the division operates three processing plants and employs over 3,000 people. However, Dole will continue to maintain its facilities located in Yuma, Arizona, and Huron, California.

Strategic Implications

Dole Executive Chairman, Carl McCann, commented, “A combination with Organicgirl will create a strong platform to realize operational efficiencies and expand the overall offering and service to customers and consumers.” He emphasized that the completion of this sale is a pivotal milestone for Dole, allowing the company to refocus its efforts and investments on its core business activities.

Reactions from Arable Capital

Arable Managing Director Derek Yurosek expressed optimism about the acquisition, stating that the business possesses “strong brands and a significant presence across multiple channels, as well as strong leadership.”

Conclusion

This acquisition marks a new chapter for both Dole and Organicgirl, as they look to leverage their strengths and enhance their operational capacities in the fresh produce market.