California-based Dole, a leader in the fresh produce industry, has filed with regulators for its third IPO, four years after going private.
CEO David Murdock has controlled Dole, one of the world’s largest producers of fruits and vegetables, since 1985. He took the company private for the first time in 2003, then public in 2009, then private again in a $1.2-billion deal in 2013, which gave Murdock sole ownership.
At the time Dole had been struggling with profitability, due largely to unstable demand and low prices for bananas, its top product. According to the IPO paperwork filed with the U.S. Securities and Exchange Commission in April, the company has since sold non-core assets, improved its supply chain, and diversified its product lines. It previously sold its packaged foods and Asian fresh produce businesses to Japan's Itochu Corp. to help pay down debt, reducing the company’s size by one-third.
“Our inspiration and vision comes from Mr. Murdock, who has been at the forefront of Dole and the fresh produce industry for over 30 years”, the company said. “Collectively, the senior management team has successfully delivered strong operating and financial results through disciplined execution and implementation of Mr. Murdock’s vision.”
The global food company generated $4.5 billion in revenue and over $215 million in profit last year. However it also posted a net loss of $23 million, due to an array of costs including stock-based compensation and litigation charges.
Dole is the top producer of bananas in North America by market share, and second-biggest producer of pineapples. The company said in the filing that it “expects to benefit from the increasing demand for fresh produce from health-conscious consumers”, Reuters reports. The consumer trend harmonises with 94-year-old Murdock’s own personal interest in health and longevity. He established the David H. Murdock Research Institute in North Carolina to, among other things, explore the health benefits of plant-based diets.
