Performance Food Group to sell fresh-cut segment to Chiquita Brands
Would pay $855 Million for the deal.
24/02/05 Performance Food Group has announced that it has signed a definitive agreement for the sale of its subsidiaries that comprise the fresh-cut produce segment for a purchase price of $855 million to Chiquita Brands International, Inc. Chiquita has received commitments from Morgan Stanley Senior Funding, Inc., Wachovia Bank, National Association and Goldman Sachs Credit Partners, L.P. to finance the purchase price.
Net proceeds after taxes and expenses related to the transaction are expected to be approximately $695 million. Closing of the transaction is subject to customary closing conditions, including the expiration of the waiting period under the Hart Scott Rodino Act, and is expected to be completed during the second quarter.
Goldman, Sachs & Co. has acted as financial advisor to the Company in connection with the transaction, and Merrill Lynch and Co. rendered a fairness opinion to the Company's Board of Directors.
Performance Food Group markets and distributes more than 64,000 national and private label food and food-related products to approximately 48,000 restaurants, hotels, cafeterias, schools, healthcare facilities and other institutions. The Fresh Express(R) line is the industry leader and pioneer of fresh packaged salads.
