Grupo acquires Chiquita in $1.3bn deal

Brazilian juice maker Grupo Cutrale and investment firm Safra Group yesterday agreed to acquire US-based banana producer Chiquita Brands International, in a deal worth $1.3bn (€1.02bn).

Cutrale-Safra won an almost three-month battle for control of the North Carolina-based company, which rebuffed its three prior takeover attempts and sought to merge with Fyffes.

Chiquita will become a wholly owned unit of Cutrale-Safra and remain incorporated in New Jersey once the deal is finalised, according to a statement.

“To ensure Chiquita has the premier and most sustainable platform in its sector, Chiquita will be able to access Cutrale-Safra’s substantial experience in all aspects of the fruit and juice value chain and extensive financial expertise,” the statement added.

The acquisition is a victory for Brazilian-Lebanese financier Joseph Safra and orange juice baron Jose Luis Cutrale, who joined forces to add Chiquita to their orange, apple, peach, lemon, and soybean business.

Shares of Chiquita gained over 40% since August 11, when Cutrale-Safra made their takeover intentions public.

Shares of Chiquita shed two-thirds of their value over the past decade in the face of geopolitical instability in Latin America, price volatility and uneven demand for fresh produce .

Shareholders of Chiquita will be paid $14.50 for each of their shares in cash, valuing the company at about $682m.

Cutrale-Safra will assume Chiquita’s debt, with Safra-controlled bank J Safra Sarasin extending a buyback of the banana producer’s senior bonds due in 2021.