March 5, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Dole announced it has agreed to sell its 65 percent majority stake in Progressive Produce to PFT Holdings, the parent company of Pacific Trellis Fruit, and a portfolio company of Arable Capital Partners, in a $120 million deal. 

“We are pleased to announce the sale of our equity interest in Progressive Produce to Arable Capital Partners,” said Carl McMann, executive chairman, Dole. “Since our initial investment in 2016, the business has been a strong performer within our Group.”

“We would like to thank the current and former management teams for their dedication, passion, and significant contributions to the growth of this business over the time that we have been partners. We wish the executive team and their new majority owners continued success for the future.”

“The proceeds from this sale will further strengthen our financial position and enhance the Group’s focus on, and investments in our core activities.”

Arable Capital was launched by a team of highly experienced industry veterans who are aiming to fill the funding gap that exists in the food and agriculture sectors. Combining a long-term investment horizon with a deep well of expertise in the domain, Arable is often the first outside investor in what has historically been privately family-held and operated companies.

Operating under this framework, Arable Capital currently has five platform investments: Pacific Trellis Fruit, organicgirl, Royal Ridge Fruits, Blazer Wilkinson Gee, and Laurel Ag & Water.

Joining will be Progressive Produce, a Los Angeles-based grower, packer, and distributor of conventional and organic produce to the retail, wholesale, and foodservice sectors in the U.S, and Canada.

Founded in 1967, the company is a subsidiary of Dole, and is part of its Diversified Fresh Produce – Americas and Rest of World reporting segment, with current annual sales exceeding $400 million.

A Peach of a Market

Valued at US$96.26 billion in 2023, the U.S. fruits and vegetables market is forecast to grow at a CAGR of 4.1 percent between 2024-2030, due to a convergence of multiple factors. As obesity rates soar, many consumers are becoming increasingly engaged in health and wellness and the food choices that will support those ideologies.

Veganism is on the rise, which is driving growth for plant-based diets, and in turn, driving sales of fresh produce. Approximately 14 percent of Americans follow a meat-free diet, according to Statista, and as health, weight management, animal welfare, and environmental concerns continue to play larger roles in food choices, fruits and vegetables will be leading choices at the market. 

“Arable is thrilled about the opportunity to partner with Progressive Produce,” said Derek Yurosek, managing director, Arable Capital Partners. “The Company is a leader in top produce categories and has an impressive and diversified customer base, as well as an exceptional team. We look forward to helping Progressive Produce continue to deliver outstanding products and service to its retail, wholesale, and foodservice customers.”

Yurosek continued, “While Progressive Produce and Pacific Trellis Fruit will continue to operate independently, we are excited about the chance for them to work together to continue to grow their businesses and ultimately bring even greater value to their grower partners and customers. This is a fantastic outcome for everyone involved.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.