Chiquita to Shed German Distribution Business

Chiquita Brands International Inc. signs a definitive agreement to sell its wholly-owned German distribution business, Atlanta AG, for net proceeds of at least $85 million at current exchange rates to UNIVEG Fruit and Vegetables BV. The parties also entered a long-term strategic agreement in which Atlanta will continue to serve as Chiquita's preferred supplier of banana ripening and distribution services in Germany and Austria.

"We are pleased to conclude yet another important step in the execution of our profitable growth strategy," says Fernando Aguirre, chairman and chief executive officer, Chiquita. "This transaction will enable us to increase our focus on providing branded, healthy, fresh foods to consumers worldwide, while ensuring that we continue to provide reliable, high-quality ripening and distribution of Chiquita bananas in the German and Austrian markets."

The transaction is subject to review by European competition authorities, and is expected to be completed near the end of the second quarter. The sale transaction will result in a gain to Chiquita, and net proceeds are expected to be used primarily for debt reduction.

"The acquisition of this leading German fruit and vegetables trading company proves UNIVEG's continued commitment to delivering added value to our customers. Moreover, we can optimize our infrastructure and benefit from the customer service capabilities and quality assurance system of Atlanta AG in Germany and Austria," says Hein Deprez, CEO of UNIVEG.