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Seeka to harvest a deal with Aongatete
Posted on Thursday, 14 March 2019 14:15
Seeka is buying New Zealand-based coolstore and packhouse company Aongatete Coolstores for NZD 25.00 million (USD 17.13 million).
The transaction, which is part of the buyer’s heartland growth strategy, is expected to complete on 18th March 2019.
Headquartered in Katikati, Aongatete provides a range of services, including orchard management and labour supply, harvest and freight coordination, as well as pre-season orchard inspections and crop assessment.
The deal is expected to add a further 4.00 million to 4.50 million trays to Seeka’s catchment and result in sustainable earnings before interest, taxes, depreciation and amortisation of between NZD 3.50 million and NZD 4.50 million.
Established in 1987, Seeka claims to be the largest producer of kiwifruit in New Zealand and provides orchard leasing and management services.
The company has founded the Seeka Grower Council, a fully-audited supply entity which delivers governance services on behalf of kiwifruit and kiwiberry orchardists supplying to the business.
As well as kiwifruit, the buyer also produces apricots, avocado, cherries and plums, as well as importing papaya, bananas and pineapple.
For the financial year ended 31st December 2018, Seeka booked revenue of NZD 203.71 million, a 9.0 per cent increase on NZD 186.81 million in the previous 12 months.
Aongatete operates within Seeka’s traditional catchment area in the Bay of Plenty, which will provide the buyer with further resources for produce growing.
There have been 97 deals targeting fruit and tree nut farming companies announced worldwide since the beginning of 2018, according to Zephyr, the M&A database published by Bureau van Dijk.
Canada-based Public Sector Pension Investment Board, in the largest of these, invested BRL 1.50 billion (USD 391.91 million) in Brazilian coffee manufacturer Montesanto Tavares Participacoes e Empreendimentos.
© Zephus Ltd