Performance Food Group sells fresh-cut segment to Chiquita Brands
Expects to use the revenue generated from the sale to repay all of its indebtedness on the balance sheet.
29/06/05 Performance Food Group has announced the completion of the sale of its subsidiaries that comprise the fresh-cut produce segment to Chiquita Brands International, Inc. for a purchase price of $855 million plus customary adjustments in working capital. Net proceeds after taxes and expenses related to the transaction are expected to be approximately $690 million. The Company expects to use approximately $282 million of the net proceeds to repay all of its indebtedness on the balance sheet, including approximately $4 million in prepayment penalties and accrued interest for the Company's $50 million senior notes. The remaining balance in net proceeds of approximately $400 million will be used primarily for a return of capital to shareholders.
