Chiquita Brands International Inc. has signed an agreement to sell its 12 refrigerated cargo vessels to a two-company partnership.
The company said late Tuesday that it will sell the ships for $227 million to an alliance formed by Eastwind Maritime Inc., a shipping firm that operates its own commercial fleet, and NYKLauritzenCool, which operates a fleet of specialized vessels.
Under the terms of the deal, Chiquita will lease back 11 of the ships for seven years, with options for up to an additional five years, and another vessel for three years, with an option for up to two additional years.
Chiquita had previously announced it was considering a sale of the fleet as a means to help restore it to profitability. The ships carry about 70 percent of the company's bananas to markets in North America and Europe.
"This long-term arrangement will increase our financial flexibility, simplify our business model and allow us to increase our focus on providing branded, healthy, fresh foods to consumers worldwide," said Fernando Aguirre, chairman and CEO of Chiquita.
Chiquita (NYSE: CQB), headquartered in Cincinnati, is a marketer and distributer of fresh and value-added produce in Europe and North America.
The company said late Tuesday that it will sell the ships for $227 million to an alliance formed by Eastwind Maritime Inc., a shipping firm that operates its own commercial fleet, and NYKLauritzenCool, which operates a fleet of specialized vessels.
Under the terms of the deal, Chiquita will lease back 11 of the ships for seven years, with options for up to an additional five years, and another vessel for three years, with an option for up to two additional years.
Chiquita had previously announced it was considering a sale of the fleet as a means to help restore it to profitability. The ships carry about 70 percent of the company's bananas to markets in North America and Europe.
"This long-term arrangement will increase our financial flexibility, simplify our business model and allow us to increase our focus on providing branded, healthy, fresh foods to consumers worldwide," said Fernando Aguirre, chairman and CEO of Chiquita.
Chiquita (NYSE: CQB), headquartered in Cincinnati, is a marketer and distributer of fresh and value-added produce in Europe and North America.