Dole Food Co. Inc. (DOLE) said President and Chief Executive
David A. DeLorenzo will join Itochu Corp. (ITOCY, 8001.TO) when a
roughly $1.69 billion deal to sell Dole's worldwide packaged foods
and Asia fresh produce businesses to the Japanese company is
completed.
Dole's shareholders approved the deal Thursday, moving it a step
closer to closing by year's end. At Itochu, Mr. Lorenzo will lead
the businesses it's buying from Dole.
As part of the transition, Dole Chairman David H. Murdock will
return to the dual role of chairman and CEO. Dole General Counsel
C. Michael Carter will assume the added role of president and chief
operating officer, with all operating and corporate functions
reporting to him.
The fruit-and-vegetable company agreed to sell the businesses in
September following a strategic review begun in May, after Dole
reported a slump in core earnings. Dole retained its North American
fresh-vegetables business and its fresh-fruit businesses in North
America, Latin America, Europe and Africa.
Dole Chief Financial Officer Joseph S. Tesoriero also will be
leaving the company in connection with the sale of the businesses.
He will be succeeded by Keith C. Mitchell, the CFO of Dole's North
American fresh-fruit business.
Mr. Carter, who joined the company in October 2000, "has worked
with me in leading Dole through our most significant strategic
events and challenges," Mr. Murdock said. "I am confident in his
ability to right-size Dole and deliver synergies within our
remaining businesses."
Dole expects that, as the result of its reduced footprint after
the deal closes, overall revenue for the new company will be about
$4.2 billion, with revenue from its fresh-fruit business line being
reduced by about 30%.
Shares closed Thursday down two cents at $11.51 and were
inactive in after-hours trading. The stock is up by a third this
year.
Write to Tess Stynes at Tess.Stynes@dowjones.com
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