New Zealand produce company Seeka Kiwifruit Industries has announced the acquisition of the the kiwifruit and orcharding business and assets of Australia's Bunbartha Fruit Packers.
The transaction is valued at A$22m (US$16m). Once completed, the deal acquisition will make Seeka the largest kiwifruit grower in Australia, building on its position as New Zealand’s largest kiwifruit grower, Seeka said in a statement.
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The acquisition is expected to close on 20 August. The purchase includes 505 hectares of land in Shepparton, Victoria, including approximately 240 hectares of orchard land – comprising 95 hectares of kiwifruit, with pears, plums, apricots and cherries on the remainder.
Seeka CEO Michael Franks said: "Seeka is excited by this transaction. Seeka’s and BFP’s businesses are strategically aligned and complement each other. Both sell to similar customers at different times of the year, and now have the opportunity to integrate selling and marketing operations. Seeka’s current Australian sales total approximately A$15m. We expect to add further value through the synergies that both businesses can deliver to each other from internal optimisation and market expansion. We anticipate that these synergies will deliver incremental returns to our shareholders and our growers.
"Seeka will continue to seek value-accretive acquisition opportunities while at the same time reviewing its current mix of asset holdings to ensure they fit consistently with strategy and earn their cost of capital. Our current focus is on the integration of BFP into the Seeka group and putting management, compliance, safety and reporting systems in place."
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