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RICHMOND, Va. -- Performance Food Group said it has completed the sale of its subsidiaries that comprise the fresh-cut produce segment to Chiquita Brands International, Inc., for a purchase price of $855 million plus customary adjustments in working capital.
Net proceeds after taxes and expenses related to the transaction are expected to be approximately $690 million. The company expects to use approximately $282 million of the net proceeds to repay all of its indebtedness on the balance sheet, including approximately $4 million in prepayment penalties and accrued interest for the company's $50 million senior notes. The remaining balance in net proceeds of approximately $400 million will be used primarily for a return of capital to shareholders.
Bob Sledd, chairman and c.e.o., commented, "We are excited about the opportunity to focus exclusively on our core distribution business as a result of the sale of the fresh-cut
segment. The alignment of fresh-cut with a respected industry leader represents a new opportunity for the segment to achieve its long term potential."