Total Produce pursue continued growth
Despite having recently acquired a 45% stake in Dole, Total Produce is targeting even greater growth in 2018. The Dole transaction reflects a continuation of the group’s successful expansion strategy. However, unusual weather conditions and currency movements will restrict growth in the first half of the year.
On 1st February 2018, Total Produce entered into a binding agreement to acquire a 45% stake in Dole Food Company for US$300m. The deal remains subject to regulatory approval but is expected to be confirmed in the second half of 2018. The Dole acquisition was financed by the issuing of 63 million new ordinary shares, which raised $180 million. The results of the huge transaction will not be seen until 2019. A final dividend of 2.5 cents per share in 2018 represents a 10% increase on last year.