Dole Food Co., Inc. (DOLE: Quote) said Thursday that President and CEO David DeLorenzo will join Itochu Corp. (ITOCY) to lead the Asia fresh and worldwide packaged foods businesses following its sale to the Japanese trading company for $1.69 billion. DeLorenzo will also leave Dole’s board.
Joseph Tesoriero, current executive vice president and chief financial officer, and Sue Hagen, current senior vice president of human resources, will leave Dole in connection with the sale transaction.
Meanwhile, Dole Chairman David Murdock will return to the dual role of chairman and CEO. Michael Carter, executive vice president, general counsel and corporate secretary, will assume the added role of president and COO with all operating and corporate functions reporting to him. Carter will also rejoin Dole’s board.
In addition, Keith Mitchell, current CFO of Dole’s North American Fresh Fruit business, will become the company’s new CFO. Charlene Mims, currently responsible for benefits and payroll, will lead Human Resources.
Beth Potillo, current treasurer, and Yoon Hugh, current controller and chief accounting officer, will both become senior vice presidents with added responsibilities.
In mid-September, Dole said it agreed to sell its Asia fresh and worldwide packaged foods businesses to Itochu for $1.69 billion in cash.
Dole said Thursday that its stockholders approved the sale of the businesses to Itochu at a special meeting of stockholders at the company’s headquarters in Westlake Village, California. The company noted that the transaction has already received required regulatory approval in six of seven reviewing countries, subject to final regulatory approval from China.
Further, Dole said that it was continuing to work with Itochu toward consummating the sale by December 31, 2012.
Dole’s operations will no longer include the worldwide packaged foods and Asia fresh businesses, resulting in overall revenue for the new Dole in the about $4.2 billion range, with revenue from its fresh fruit business line being reduced in size by about 30 percent.
Dole said that a new capital structure at the time of consummation of the sale, together with substantially all the proceeds from the sale transaction, will be used to pay off existing debt and to provide funding for transaction-related taxes and expenses, the possible settlement of some or all of Dole’s long-term Japanese yen hedges, anticipated post-closing restructuring expenses and other corporate purposes.
DOLE closed Thursday’s trading at $11.51, down $0.02 or 0.17 percent on a volume of 392,500 shares.
ITOCY closed Thursday’s trading at $20.00, down $0.20 or 0.99 percent on a volume of 12,677 shares.
To receive FREE breaking news email alerts for Dole Food Company, Inc. and others in your portfolio
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com