Cincinnati, Aug. 19 - Chiquita Brands International, Inc. today announced that it has completed the previously announced sale of its wholly-owned German distribution business, Atlanta AG to UNIVEG Fruit and Vegetables BV for net proceeds of approximately EUR 65 million, or US$92 million, including working capital and net debt adjustments.
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, Austria and Denmark. The company continues to anticipate that the sale and related entry into the long-term banana ripening and distribution services agreement will result in a gain as well as a one-time tax benefit. Net proceeds are expected to be used primarily for debt reduction, and the sale and related use of proceeds are anticipated to be accretive to future earnings.