David H. Murdock, chairman and chief executive of Dole Food Co. in Westlake Village, is taking the produce company private in a deal valued at $1.21 billion.
The Los Angeles billionaire will pay $13.50 a share in cash for all the outstanding shares of common stock he doesn’t already hold. As of June, he and his family members owned nearly 40% of Dole shares.
The purchase, months in the making, comes after Murdock made a $12-a-share proposal in June. The transaction represents a 32% premium over the $10.20-a-share price at which the stock was trading just before the negotiations first became public.
The $13.50 sale price is 5.4% higher than Friday’s $12.81-a-share close.
The arrangement places the total enterprise value of Dole, plus debt, at $1.6 billion, according to the company. The business’ board, sans Murdock, unanimously approved the deal, which now needs to be cleared by stockholders and regulators.
Murdock will fund the purchase with his own cash and equity, aided by financing from Deutsche Bank, Bank of America and the Bank of Nova Scotia.