10:20 AM New York – Dole Food files for $500 million public offering. The tight debt markets may have forced company to seek relisting of the stock after staying private for nearly six years.

Dole Food Company, Inc controlled by billionaire David Murdock based in Los Angeles, California filed to go public.

Murdock, 86 years of age is the sole owner of the company.

Goldman Sachs, BofA Merrill Lynch, Deutsche Bank Securities and Wells Fargo are managing the offering and will collect at least $28 million in fees.

The fruit and vegetable company plans to raise $500 million in an offering but the number of shares offered has not been decided.

The stock will trade under the symbol DOLE.

Debt Loaded Balance Sheet

The company claims to be the largest food and vegetable seller in the world with operations around the world.

The revenues have jumped to $7.6 billion in 2008 from $6 billion in 2006.

The company plans to use most of the offering proceeds to repay debt that is maturing in 2010 and 2011. Total of $383 million is maturing in 2010 and additional $200 million is maturing in 2011. The company has in all $2 billion of debt.

The company’s value may not have grown much since it was taken private by Murdock. The 2003 private transaction valued the company at $2.5 billion and as of the latest quarter the company has book value of $555 million.

The company market value is expected to be in the range of $2.5 and $4 billion according to the analysis done by 123jump.com.

The company’s profitability in the last four years has been uneven. In the period between the years 2005 and 2008, the company has earned less than $160 million and has lost money in 2006 and 2007.

During the period, operating earnings have dropped from $308 million in year 2004 to $275 in fiscal year ending in January 2009.

In the last six months ending in June, revenues were $3.3 billion and net income was $125 million.

Ownership History

The company was founded in 1851 and since then has been renamed and reorganized several times and operated as farming and logistics company.

The company generates most of its profit selling fresh fruits and packaged foods. Selling fresh vegetables has not been a consistent profit maker for the company.

In 1985, David Murdock acquired controlling interest in the predecessor company, Castle & Cook Inc and the company was renamed Dole in 1991. Since then the company sold most of its real estate holdings in 1995.

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