Food producer Dole Food (NYSE:DOLE) was set to open higher Tuesday on news it had agreed to sell a pair of its businesses to Japan’s Itochu Corp.
Dole will sell its global packaged foods business — which includes canned, bagged and frozen produce and fruit — as well as its Asian fresh produce business for $1.7 billion in cash. The company intends to use the funds to both pay down debt and put toward restructuring costs.
After the sale, Dole’s primary focuses will be North American fresh vegetables, as well as North American, Latin American, European and African fresh fruit, according to Reuters; the whole of its remaining businesses account for about $4.2 billion in annual sales.
Through the deal, Itochu, a diversified Japanese trading house, will add to its current food holdings, which include a stake in Chinese food distributor Ting Hsin.
DOLE shares were up 7% in Tuesday pre-market trading.