Australia’s Cobram Estate Olives (CBO) has agreed to acquire California Olive Ranch, the US-based olive-oil firm.
The deal follows CBO’s $115.6m share issue in September to finance its expansion in the US.
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At the time, the producer of the Cobram Estate olive-oil brand said the funds would be directed towards buying land on which it would develop around 1,600ha of olive groves.
Cobram Estate will pay $173.5m to buy COR. The consideration includes $88.5m in cash, $70m in vendor notes, and a $15m earn-out payment.
In a statement, CBO said that the Californian extra virgin olive oil producer operates a “vertically integrated model” spanning cultivation, milling, bottling and marketing.
COR manages about 1,870ha of olive groves in California, with 261ha owned and 1,609ha held under long-term leases.
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By GlobalDataIt also sources olives from more than 2,500ha of contracted third-party groves.
The business owns and operates an olive mill, oil storage, bottling and warehouse facility in Artois, California.
COR’s portfolio includes two “premium” brands, including California Olive Ranch, which CBO said is the top-selling brand of Californian-produced olive oil in the US.
The business is expected to deliver around $150m in net revenue and EBITDA of $16m on a pre-synergies basis in FY2026 that ends on 30 September.
The combination will generate synergies of $12m in FY2027, the first full year of ownership. The figure is expected to rise to more than $20m annually by FY2030, driven by higher yields, lower grove costs, corporate efficiencies and other operational changes.
Commenting on the deal, CBO chair Rob McGavin said: “The acquisition of California Olive Ranch, Inc., delivers a compelling set of strategic and financial benefits for CBO.
“It immediately expands our Californian olive growing footprint from approximately 1,422ha to around 3,292ha of planted groves, while accelerating sales growth through the addition of well-established, premium household brands.”
CBO also said it has completed its FY2026 Californian harvest, securing total olive oil supply of 3.8 million litres for the next 12 months. The company said that this represents a 27% increase compared with the volume available last year.
