Dole Food Company Inc. announced the status of pending asset sale transactions. First, Dole has signed a binding letter of intent to sell its flowers division. The sale of the flowers division is expected to take place in two or three phases, with closing of at least the first phase expected to occur in the fourth quarter of 2008.
Second, Dole has signed a definitive purchase and sale agreement to sell its JP Fresh subsidiary in England and its ripening and distribution business in France to Compagnie Financiere de Participations, a company in which Dole holds a non-controlling 40% stake, with closing expected to occur in fourth quarter 2008.
Net proceeds to Dole from the sale of the flowers division, the two Dole ripening and distribution companies in Europe, and some additional agricultural acreage in California, Hawaii, and Mexico will be about $145 million. Cash proceeds of these transactions will be used to pay down Dole's senior secured credit facilities.