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The sale of Dole Food Co. Inc.’s worldwide packaged foods and Asian fresh produce businesses to Japanese-based ITOCHU Corp. has been delayed.
ITOCHU requested an extension of the closing date of the previously announced $1.7 billion sale and paid Dole a $200 million nonrefundable deposit Friday.
The deposit will be forfeited and kept by Dole if the sale isn’t completed by April 1.
Dole and ITOCHU did not say what the prior closing date was.
As part of the extension agreement, Dole President and CEO David DeLorenzo will assume a full-time position leading the management team of the businesses ITOCHU is acquiring, and will join ITOCHU as leader of the businesses after closing. He will remain on Dole’s board of directors after the sale.
David Murdock now returns to the roles of chairman and CEO of California-based Dole.
Dole, which was founded in Hawaii and still owns about 25,000 acres on Oahu including land farmed in pineapple, will remain an international company with fresh vegetable production in North America and fresh fruit businesses in North America, Latin America, Europe and Africa.
The company intends to use proceeds of the sale largely to reduce debt. Dole also previously said the sale will prompt cost-saving and corporate restructuring efforts aimed at saving about $50 million annually by the end of next year.