Dole agrees to revised $1.21-bn buyout offer from David Murdock

Struggling US fruit-and-vegetable producer Dole Food Co yesterday agreed to sell itself to its chairman and CEO David Murdock after he raised his offer to $1.21 billion.

Murdock, Dole's largest shareholder with about 40-per cent stake, raised his offer to $13.50 per share, a 5-per cent premium to Dole's $12.81 Friday closing price. Including debt, the deal's total value is around $1.6 billion.

Murdock, who had taken Dole private in 2003 for $2.5 billion and re-listed it in 2009, has now sweetened his June 2013 offer of $12 per share.  (See: Dole Food boss David Murdock offers $1.07 bn in buyout bid)

Dole will pay a $15 million breakup fee if it accepts an alternative offer, while Murdock will pay $50 million if he fails to complete the deal under certain circumstances.

After a decline in profits for the past three years, Dole launched a strategic review in May 2012, which including a full or partial separation of one or more of its businesses, potential spin-offs, joint ventures and sales transactions.

Post strategic review, Dole sold its worldwide packaged foods and Asia fresh produce businesses in April to Japan's Itochu for $1.70 billion in cash.

Founded 162 years ago, California-based Dole is the largest producer of fruits and vegetables in the world, selling over 300 products in 90 countries.

It sells food items such as bananas, fresh and packaged pineapples, grapes, strawberries, salads, and other fresh and frozen fruits and juices.

Dole posted sales of $4.2 billion in 2012, down 11 per cent from 2011.