The American Banana Brand Chiquita has agreed to be sold to two Brazilian companies for around $681 million.
The action comes just days after the brands shareholders soundly rejected plans to merge with Irish importer Fyffes following a corporate battle to see who would walk off with the brand’s name.
Chiquita, a brand that has huge market value, is recognised globally and maintains an annual revenue of over $3 million, employing around 200,000 people in almost 70 countries.
Brazilian Investment firm Safra Group and juice company Cutrale Group will purchase Chiquita for $14.50 per share, (a 2% premium to its Friday closing price of $14.16) putting the total transaction value at $1.3 billion, including the assumptions of Chiquita’s debts.
Chiquita said that it planned to enter talks with Safra and Cutrale on their competing offer of $681 million following their refusal of the initial offer from Fyffes. Chiquita had received the $681 million bid from the pair last week after previously rejecting offers from the duo at $14 per share. They had bid $13 per share in August.
The banana brand will become part of the Cultrale-Safra Group once the transaction is complete.
Source USA Today