Dole Subsidiary Buys 50% of Banana Farming Firm

A wholly owned subsidiary of Dole Food Co. in Westlake Village has agreed to pay $26.3 million to an Irish fruit distributor for a 50% stake in Banana Trading Corp., which owns a Guatemalan banana farming business and banana farming assets in Honduras.

Fyffes Plc also has entered into a long-term shipping agreement with Dole involving part of its Latin American business, allowing both companies to make cost savings.

Fyffes will receive an upfront payment of $19.3 million for the banana farming assets, with another $7 million payable within four months.

“The assets sold have principally been employed in supplying Fyffes’ U.S. marketing operations, which have been unprofitable, and consequently the group has decided to dispose of them,” said Carl McCann, deputy chairman of Fyffes.