Dole sells off Progressive Produce for $120M
Dole plc has reached an agreement to sell its 65 percent equity stake in Progressive Produce LLC to PTF Holdings LLC, the parent company of Pacific Trellis Fruit LLC and a portfolio company of Arable Capital Partners. 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. The company is one of California’s premier produce companies with annual sales in excess of $400 million.
Post 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.
“Since our initial investment in 2016, the business has been a strong performer within our group," said Carl McCann, executive chairman of Dole plc. "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."
McCann said the proceeds from the sale will further strengthen the company's financial position and enhance the group’s focus on, and investments in, core activities.
“Arable is thrilled about the opportunity to partner with Progressive Produce," said Derek Yurosek, managing director of Arable Capital Partners. "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," said Yurosek. "This is a fantastic outcome for everyone involved.”
