Dole completes sale of fresh vegetables division for $140 million

DUBLIN - Dole plc (NYSE:DOLE), currently valued at $1.34 billion and trading at an attractive P/E ratio of 11.4, announced Tuesday that it has completed the sale of its Fresh Vegetables Division to og Holdco LLC, the parent company of organicgirl LLC, for $140 million. According to InvestingPro analysis, the company appears undervalued compared to its Fair Value, with 7 key insights available to subscribers.

The transaction includes $90 million in cash and a $50 million seller note, with an additional $10 million potential earn-out. The cash portion is subject to customary adjustments for net working capital, cash, and indebtedness, according to a company press release.

Dole will retain its facilities in Huron, California and Yuma, Arizona as part of the agreement.

The Fresh Vegetables Division encompasses operations related to whole produce processing and sales, including various lettuce varieties, cauliflower, broccoli, celery, and other vegetables, as well as salads and salad kits. The business operates agricultural sites and three processing plants across the United States, employing more than 3,000 people.

"The completion of this sale represents an important strategic milestone for the Group and will enable us to further concentrate our efforts and investments on our core business activities," said Carl McCann, Executive Chairman of Dole plc.

The buyer, og Holdco LLC, is a portfolio company of Arable Capital Partners, LLC, which specializes in food and agribusiness investing. Derek Yurosek, Managing Director of Arable Capital Partners, described the acquisition as "an outstanding addition to our portfolio that is positioned for continued growth and success."

Dole plc remains a global fresh produce leader, operating in over 85 countries worldwide.

In other recent news, Dole plc reported first-quarter earnings per share (EPS) of $0.35, missing analyst expectations of $0.39. Despite this, the company’s revenue slightly exceeded estimates, coming in at $2.1 billion compared to the anticipated $2.05 billion. However, revenue for the first quarter decreased by 1.0% from the previous year. Net income also saw a significant drop, falling 32.5% from $65.4 million to $44.2 million, primarily due to a one-time gain from the previous year that did not recur. Adjusted EBITDA decreased by 4.8%, from $110.1 million to $104.8 million. In a positive development, Dole raised its full-year guidance, indicating confidence in its performance for the remainder of 2025. The company cited a strong foundation for the year ahead. Despite the initial earnings miss, this adjustment in guidance suggests optimism for future quarters.

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