Fyffes And Chiquita Announce Merger Deal

Irish banana supplier Fyffes has announced it has merged with US fruit firm Chiquita.

Boards of Directors of both companies have approved the agreement, under which Chiquita will combine with Fyffes in a stock-for-stock transaction.

The agreement is expected to create a company with approximately $4.6 billion in annual revenues and will be finalised before the end of 2014.

Chiquita has a global presence with operations in 70 countries, including a substantial proportion of the US market.

Headquartered in Dublin, Fyffes oversees operations in Europe, the US, Central America, South America and Asia.

ChiquitaFyffes is expected to operate in over 70 countries and hold a workforce of approximately 32,000 people around the world.

"This is a milestone transaction for Chiquita and Fyffes that brings together the best of both companies which, we believe, will create significant value for our shareholders and offer immediate benefits for customers and consumers worldwide," said Ed Lonergan, Chiquita's Chief Executive Officer. "The combined company will also be able to provide customers with a more diverse product mix and choice. We know Fyffes well and our shared heritage will help to ensure a smooth integration as we work to bring best practices across geographies and business units to achieve substantial operating efficiencies."

"This deal will be transformative and offer exciting opportunities for the new business. We are looking forward to working with the Chiquita team to build a combined company which is well positioned to succeed in our highly competitive marketplace and which will create significant value for our shareholders," said David McCann, Fyffes Executive Chairman.

"Our outstanding employees will benefit from working for a larger, more diverse business which offers opportunities for growth. We believe we will be able to use our joint expertise, complementary assets and geographic coverage to develop a business that can run smoothly and efficiently to better partner with our customers and suppliers."

(IT)