LONDON — Chiquita Brands International said Monday that it had agreed to acquire Fyffes, an Irish fruit and produce distributor, in an all-stock deal that valued Fyffes at about $526 million.
The combined companies, to be named ChiquitaFyffes, will be the world’s largest producer and distributor of bananas and will have about $4.6 billion in annual revenue. The transaction is expected to be completed by the end of 2014.
Chiquita and Fyffes will become a wholly owned subsidiary of a new holding company incorporated in Ireland.
The companies expect the combination to result in annual cost savings and efficiencies of at least $40 million by the end of 2016.
“This is a natural strategic partnership that combines two complementary companies of long history and great reputations that have built upon an unwavering commitment to exceed our customers’ expectations,” said Edward F. Lonergan, chief executive of Chiquita, based in Charlotte, N.C.
“We will maintain our brands, all of which are valued by both customers and consumers,” Lonergan added. “The combined company will also be able to provide customers with a more diverse product mix and choice.”
Fyffes stockholders will receive 0.1567 of a share in the combined company for each of their shares, valuing each Fyffes share at 1.22 euros, or about $1.69. That represents a 38 percent premium to the closing price of Fyffes on Friday.
After the transaction, Chiquita shareholders will own 50.7 percent of the combined company. Lonergan will serve as chairman; David McCann, executive chairman of Fyffes, will be chief executive.
“This deal will be transformative and offer exciting opportunities for the new business,” McCann said.
The deal is subject to shareholder and regulatory approval. Stockholders representing about 25.6 percent of the outstanding share capital of Fyffes have agreed to support the deal, Chiquita said.
Chiquita has annual revenue of more than $3 billion. It employs about 20,000 people in nearly 70 countries.
Fyffes, of Dublin, employs about 12,000 people and has annual revenue of more than $1.5 billion.