Jun 14, 2004 1:16 PM, from staff and wire reports

Chiquita Brands International Inc has entered into definitive agreements for the sale of its banana-producing and port operations in Colombia to Invesmar Ltd, the holding company of CI Banacol SA. Banacol is a Colombia-based producer and exporter of bananas and other fruit products.

The agreement provides for Chiquita to receive about US $28.5 million in cash, approximately US $15 million face amount of notes and deferred payments (of which US $3 million is due within 90 days of closing), and the assumption by the buyer of approximately US $8 million of pension liabilities.

This transaction also includes two separate eight-year agreements for Chiquita’s purchase from the buyer’s affiliates of about 11 million boxes of Colombian bananas per year and some 2.5 million boxes of Costa Rican golden pineapples per year. Chiquita produces roughly 11 million boxes of bananas a year in its Colombian operations, representing about 9% of its worldwide banana volume.

The parties expect to complete the transaction within the next 30 days, subject to financing and certain other conditions.