Dole Food Co. Inc. of Westlake Village announced Monday it has closed on the sale of two international businesses as part of a major company restructuring.
The $1.7 billion cash deal gives Tokyo trading company Itochu Corp. the exclusive rights to the Dole trademark on packaged foods products worldwide, as well as certain fresh produce in Asia, Australia and New Zealand.
Proceeds from the sale, which was announced in September, are being used by Dole in part to pay off about $1.7 billion of debt. Dole also announced Monday it has secured $650 million in new loans from five banks.
The deal will significantly impact Dole’s business going forward. The sold divisions accounted for about $1.6 billion in revenue for the company in 2011.
Dole’s continuing fruit and vegetable operations generated $4.2 billion in revenue in 2012.
Dole shares were down 2 percent in Monday trading on the NYSE to $10.68.