Chiquita Brands International Inc. revealed that it reached an agreement to be purchased by Brazils Cutrale Group and Safra Group. The deal is estimated to about $681 million in cash.
Cutrale Group and Safra Group said in a statement, cited by Bloomberg: “It has impressive brand loyalty and recognition through its Chiquita and Fresh Express brands, providing the company with a strong competitive edge in the growing worldwide demand for high-quality fresh fruits and salads.”
The companies made a joint statement and announced that Cutrale Group and Safra Group are to pay $14.50 a share for acquiring Chiquita, which has rejected the previous offers of Cutrale-Safra on three ocassions. The companies made another offer last week, which was also turned down by Chiquita. The transaction is expected to be finalized by the end of 2015.
The acquisition deal comes after the shareholders of Chiquita rejected another offer on Friday. The deal is expected to combine Chiquita with Cutrale Group, which is currently one of the largest orange-juice suppliers in the world. Safra Group, on the other hand, is an investment firm, headed by the Brazilian banking billionaire Joseph Safra.
Chiquita made a statement, cited by Reurters, noting: “To ensure Chiquita has the premier and most sustainable platform in its sector, Chiquita will be able to access Cutrale-Safras substantial experience in all aspects of the fruit and juice value chain and extensive financial expertise.”
Chiquita, whose history dates back since 1870, has rejected not only several previous offers of Cutrale-Safra duo, but also bids by other companies. The deal between the companies comes at a moment when Safra aims to diversify its businesses, while Cutrale is seeking to expand its reach.
Chiquita Brands International Inc. added 1.41% to trade at $14.36 per share by 15:33 GMT, marking a one-year increase of 26.52%. The company is valued at $665.03 million. According to the CNN Money, the 1 analyst offering 12-month price forecasts for Chiquita Brands International Inc. has a median target of $16.00, with a high estimate of $16.00 and a low estimate of $16.00. The median estimate represents a +11.42% increase from the last price of $14.36.
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