The Cutrale Group, an agribusiness and juice company, and investment firm Safra Group have proposed to acquire 100 percent of the outstanding stock of Chiquita Brands Inc. for $13 per share, or approximately $625 million, in cash. This proposal represents a premium of 29 percent to Chiquita’s closing share price of $10.06 as of Aug. 8.
The proposal has been conveyed to Chiquita in a letter to Kerrii Anderson, chairwoman of the Chiquita board of directors, and Edward Lonergan, Chiquita president and CEO.
“This proposal represents a highly compelling premium of 29 percent to the market’s valuation of the proposed transaction with Fyffes plc, based on Chiquita’s closing share price of $10.06 as of Aug. 8, 2014,” the letter says. “Moreover, if we are able to proceed on a timely basis with due diligence and discussions, we will be in a position to close the transaction before the end of the year, within the same timeframe you have indicated for the Fyffes transaction, without the execution risk and uncertainty inherent in that transaction.
“Our proposal also offers a superior valuation compared to Chiquita’s historical trading multiples. The proposed price, including the assumption of Chiquita net debt, represents an 11.8 times multiple of Chiquita’s last 12 months reported adjusted EBITDA.”