Chiquita Brands International that it had agreed to acquire Fyffes, an Irish fruit and produce distributor, in an all-stock deal that valued Fyffes at about $526 million. The new firm will be called ChiquitaFyffes and will be the world’s largest producer and distributor of bananas. It is expected that the firm will have about $4.6 billion in annual revenue.
1. The article indicated that there was a clear strategy to this acquisition. Explain what it is.
2. Under the deal, what do Fyffes shareholders receive?
3. Compare the size of Fyffes’ operations to Chiquita’s operations.
Bray, C. (2014). Chiquita to Acquire Irish Fruit Distributor Fyffes in Stock Deal. The New York Times, March 10 (Retrievable online at http://dealbook.nytimes.com/2014/03/10/chiquita-to-buy-irish-fruit-and-produce-distributor-fyffes-in-all-stock-deal/)