Total Produce Executives Set For Merger Bonus
A number of executives from Total Produce, including the chairman, chief executive, and finance director, are expected to receive bonuses on the completion of its merger with Dole Foods.
The merger between the two fruit companies is expected to create the largest fresh fruit and vegetable supplier in the world with a total of $9.7 billion (€7.9 billion) of sales, reports the Irish Times.
According to a document published relating to the merger of the two suppliers, it was “contemplated that one-time awards will be granted to our executive directors in connection with the transactions”.
The document did not place a value on the 'awards', but did mention that a "breakdown between cash and share portions will be determined by the compensation committee and the board prior to the IPO date."
The merger was first announced by Total Produce in February, including that Dole plc would be headquartered in Dublin but listed in the United States.
Dole plc, the name of the combined entity, hopes to raise $500 million to $700 million by way of a public flotation in the US, possibly as early as June.
The move will see the Irish fruit supplier de-list from the Euronext Dublin and the London Stock Exchange.
Total Produce bought a 45% stake in Dole in 2018, with the remainder owned by Los Angeles-based Castle & Cook.
Carl McCann, executive chairman, Total Produce, said the 2018 transaction was “a halfway stage . . . it was never going to be the end position”.
Total Produce’s shareholders will own 82.5 percent of Dole plc on completion of the merger, but they will be diluted down to 55 per cent after the IPO.