Chiquita mulls sale of banana ships
Chiquita Brands International Inc. may sell a dozen ships known as the “Great White Fleet” and eliminate its quarterly dividend in order to reduce debt.
“An asset sale would generate significant capital, which would be used primarily to reduce debt, as well as to invest in new growth opportunities,” the distributor of bananas and other perishables said.
Being considered are “various structures, including the sale and lease-back of the company’s owned ocean-going shipping fleet, the sale and/or outsourcing of related ocean-shipping assets and container operations, and entry into a long-term strategic partnership to meet all of Chiquita’s international cargo transportation needs.”
Fortis Securities is advising the company. Chiquita said it does not expect to disclose developments “until its board of directors has approved a definitive transaction.”
Chiquita owns eight reefer ships and four container ships which transport 70 percent of its bananas. It also charters additional vessels for use in moving bananas and other fruit from Latin America to North America and Europe.
Chiquita mulls sale of banana ships
