A Transaction Revisited

Protecting the Brand

Writing about deals is our stock in trade. But in a sense, our coverage although thorough, detailed and analytic is, in a specific sense, incomplete. This became clear in talking to Eastwind Maritime’s management last week about the Chiquita transaction they closed last April. We were reminded that there is more to the deal than meets the eye. With the multitude of transactions in the market, it is difficult to fathom the motivation or strategic implications of the transaction itself. It’s not only about doing a deal, although often that is the case.

In this instance, the management of Chiquita clearly had issues. It was under performing financially, had a highly leveraged balance sheet, faced stiff competition and had regulatory issues with the European Union. Moreover, despite efforts to expand its product line, it was a company dominated by a single product that is very dependent on weather.

This is only an excerpt of A Transaction Revisited

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.