Murdock completes Dole Food takeover

Dole Food, a US-based food company, has announced that its chairman and CEO David H. Murdock has completed the acquisition of all of its outstanding shares, in a deal valued at over $1.6bn that includes debt, fees and expenses.

The merger agreement was closed following the company’s stockholder approval at a special meeting held on 31 October 2013.

Under the agreement, Murdock, who earlier owned 40% of Dole stock, will pay $13.50 in cash for each share for all the outstanding shares of common stock.

Murdock said he plans to have Dole support his strong personal commitment to promoting a lifestyle and diet which includes significant emphasis on fruits and vegetables and proper nutrition as a basis for improved health and longevity.

"We will continue to support research efforts to study the impact of nutrition on health and longevity at universities and other non-profit institutions, and to write books and publications in order to broaden our collective knowledge base on the value and benefits from eating fruits and vegetables," he added.

Deutsche Bank Securities and Paul Hastings LLP provided advisory services to Murdock on the deal, while Dole and its special committee of board of directors were advised by Gibson, Dunn & Crutcher and Lazard and Sullivan & Cromwell, respectively.

Dole president and chief operating officer C. Michael Carter said: "We very much appreciate the extraordinary effort of Dole’s management team and these highly professional and experienced bankers and legal advisors who worked tirelessly with management to complete this transaction."

As of June, Murdock and his family controlled about 40% of Dole stock.

Murdock entered into the fresh produce business in 1985, when he acquired the nearly bankrupt Hawaiian firm Castle & Cooke, which owned pineapple and banana producer Dole Food.

In 2003, Murdock took Dole Food private for $2.5bn; however, he took the company public in 2009, by selling shares at $12.50 each, which valued the company at more than $1bn at that time.

Dole Food, based in Westlake Village, California, is one of the world’s leading producers and marketers of fresh fruit and vegetables, with 2012 revenues from continuing operations of $4.2bn.

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Image: Murdock will pay $13.50 in cash for each share of Dole common stock. Photo courtesy of Ramon FVelasquez.