On Tuesday, Belgian based Greenyard NV announced further plans to acquire the world’s largest fruit and vegetable producer, Dole Food Company (NYSE: DOLE). Dole is one of the largest producers of bananas and pineapples with a company value at more than $2.5 billion while Greenyard’s market capitalization totals to about $1.03 billion. The deal together would create a company with annual revenue of around 8 billion euros. Following this announcement, Greenyard’s shares rose 1.9% after a 3.3% increase on Monday.
Greenyard has secured their place in appropriate financing and is confident that this deal would allow them to branch out into the American market while also supplying to other businesses of existing customers such as Aldi, Lidl, and Ahold Delhaize. The fresh and frozen foods supplier would need to raise about 500 million euros to keep their net debt/EBITDA level ratio to below 3.5.
“Greenyard has secured appropriate financing, and is confident in its ability to complete the transaction with a balanced financing approach should a definitive agreement be reached,” the company said in a statement.