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.
Questions:
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.
Source:
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/)