Greenyard explores acquisition of Dole Food

Belgian frozen foods company Greenyard NV (GREENY.BR) is exploring an acquisition of Dole Food Co, a U.S. fruit and vegetable producer that could be valued at more than $2.5 billion, including debt, people familiar with the matter said on Monday.

California-based Dole has also been considering a potential initial public offering, but a deal with Greenyard could provide a quicker avenue for Dole’s 94-year-old CEO David Murdock to cash out on his ownership of Dole.

Murdock views Greenyard’s offer as better than that of private equity firms that took an interest in Dole, according to the sources, who asked not to be identified because the talks are confidential. However, there is no certainty that Greenyard, which has a market capitalization of close to 900 million euros ($1.06 billion), will secure the necessary financing for a deal, or that it will agree to terms with Dole, the sources added.

If the two companies fail to clinch a deal, Dole will continue to assess other offers as it proceeds with plans for an IPO, one of the sources added.

Greenyard and Dole did not immediately respond to requests for comment.