Listed Australian vegetable grower and marketer Costa Group is to spend $231 million acquiring Queensland citrus-fruit growing business 2PH Farms.
Costa has distributed and marketed 2PH citrus fruit for a decade on the domestic market and this year expanded into exports.
“2PH has a long and successful history, having been started by my parents John and Pam Pressler, uncle Geoffrey Pressler and Darryl Hess some 51 years ago,” said Craig Pressler, owner of 2PH Farms. “I know and trust Costa, and I am happy that the business will be owned and run by an Australian company which is not only an industry leader, but also has a genuine commitment to continuing to build on 2PH’s reputation for the growing and export of high-quality citrus.”
Costa says it is buying the venture to take advantage of 2PH’s established brand presence in Asia, higher citrus category revenue, exclusive rights to proprietary brands, and larger production scale, together with expanded geographical diversity for crops.
The acquisition will be funded by a $190 million rights issue and existing debt facilities, with a $200 million initial payment to be made upon settlement and a further $31 million in July 2023 relating to the purchase of a property where a new citrus crop is currently being planted by 2PH.
Costa Group CEO, Sean Hallahan said Costa has been actively engaged in the acquisition of high-quality citrus assets, including its recent acquisition of KW Orchards (Sunraysia) in March.
“2PH is not only a high-quality asset, but it will also complement and enhance our production footprint, our variety offering and market opportunities, both export and domestic.”