Greenyard to become global market leader thanks to Dole acquisition

Belgian fruit and vegetables seller Greenyard has confirmed it is close to acquiring American competitor Dole Food, although the target is twice its own size. Together, they would become the world’s largest in this industry.

Financing available

Greenyard is apparently willing to pay 2.5 billion dollars (2.1 billion euro) to acquire Dole Food, but “no final agreement has been reached for the time being and there is no guarantee that the current negotiations will lead to a deal”, Greenyard said in a press release. It did add that it has the financing to make the deal happen, but that it will only provide additional information once there is more news.

Greenyard is currently active in 25 countries and generates a 4.25 billion euro turnover. It is the result of a merger between Greenyard Foods, Univeg and Peatinvest and sells fresh fruit and vegetables, frozen products, canned products, flowers and plants, preparations and substrates. Dole Food is the world’s largest banana and pineapple manufacturer and generates a 4.51 billion dollar (3.82 billion euro) turnover. However, it is also onerous right now. If there is a deal between both companies, Greenyard would become the world’s largest fruit and vegetable manufacturer.

It seemed like Dole wanted to go public earlier this year, after delisting in 2013. However, 94-year old CEO David Murdock now seems in favour of a traditional acquisition.