The chief executive of the Dole Food Company agreed on Monday to buy full control of the fruit and vegetable producer, valuing the company at about $1.6 billion, including debt.
Under the terms of the deal, the chief executive, David H. Murdock Jr., will pay $13.50 a share for the 60 percent of the company’s shares that he does not already own. That is 5 percent higher than Dole’s closing price of $12.81 on Friday and 12.5 percent higher than Mr. Murdock’s original offer of $12 a share.
The proposal by Mr. Murdock, a self-made billionaire who turned 90 this year, is the latest chapter in the long history of Dole, the company that introduced Americans to Hawaiian pineapples in the 19th century. But the fresh produce seller has cast about for ways to bolster its profitability in recent years, including by divesting businesses, as it struggled with bad weather and other problems.
Dole’s board - excluding Mr. Murdock, who is also chairman - unanimously approved the agreement. The company has 30-days under a so-called go-shop period to find potentially higher offers.
Mr. Murdock will finance the deal with his stock holdings and his own cash, as well as debt arranged by Deutsche Bank, Bank of America and the Bank of Nova Scotia. Absent a competing bid, his takeover is expected to be completed by the end of the year.
Lazard advised a special committee of Dole’s board, while Deutsche Bank advised Mr. Murdock.
