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Feb 17 2021, 07:10 GMT
Foods
Novel deal structure provides significant value unlock and pathway for US IPO
- Sectors : Foods
- Companies : Total Produce | Dole plc
DAVY VIEW
The proposed deal structure to consummate the acquisition of Dole is in equal part novel as it is value accretive. Achievement of the minimum agreed IPO valuation condition catalyses significant equity upside for existing shareholders. The targeted US$500-700m equity raise fundamentally reshapes the capital structure and provides a foundation for future investment and growth. A pro-forma IPO valuation of 7.6x (6.9x post-synergies) is an attractive proposition for access to the world’s largest fresh produce company. We see significant upside to the equity.
