Dole to dole out shares in first US Issuance
Nothing has assured customers of good food like Dole Inc. since 1851. Based in Westlake Village, California, the company supplies fresh fruit and vegetable products in world markets. Dole Inc.’s healthy food market extends from Latin America, Europe, USA to South Africa. The company ranks number one in the banana and pineapple growing sectors. It’s also one of those companies that everybody knows for their home-grown berries.
Back in 2013, Dole Inc. went private with CEO David Murdock at the helm. This Dole Inc. privatization enabled it to grow into the world leader that it is today. According to the company’s management, the freedom to make tough decisions is what drove the company’s growth. Makes you wonder why the company wants to return to the market now, doesn’t it? The company’s plans for rapid expansion have led it to now prepare to put its shares on the US stock market. Dole Inc. plans to list an unknown number of shares for a range that has not been specified, but which will all culminate in raising approximately $400 million during the IPO. The joint managers on this deal will be Morgan Stanley, Bank of America Merrill Lynch as well as Deutsche Bank Securities. The company did not disclose the stock label it will list under.
Dole Inc. is big on the global scale for a number of reasons. When the company locked its doors to public ownership years ago, it started implementing some company-made strategies. Those strategies resulted in the food industry conglomerate making millions in savings. The company then utilized these savings to acquire farms all over the world. The de facto acreage currently owned by Dole is said to be one of the largest for any firm in the food industry. These acquisitions enabled the firm to optimize production of its signature fruits and vegetables.
Furthermore, Dole has spent a lot of money over the years to improve its global supply chains. Under its various brands, Dole ensures that consumers get the best produce in good time. Not to mention sustainably. The company divested its non-core assets between 2013 and 2017 and invested in more urgent assets. The core assets that the firm gathered over that period include refrigeration facilities, transport containers, farms, and port and research facilities. Dole has also set up 15 refrigeration ships and six salad manufacturing plants in that time.
The company appears financially stable though its recorded losses might be cause for concern. In the 12 months that ended on December 31st, 2016, Dole brought in an impressive revenue of $4.51 billion, sustaining a loss of $23 million. The loss was a decrease from 2015 however. The IPO may enable the company to recoup these losses as well as generate revenue for its general operations and planned expansion.
Companies tied to Dole include Fresh Del Monte Produce (NYSE: FDP), Musselman’s and Mott’s (NYSE: DPS). With the growing need to curb lifestyle-related diseases and the new healthy meal regimes that many people are beginning to use, there will be considerable market for Dole’s products for years to come.