1 July 2008 - Premium food producer Buderim Ginger is set to become the world's leading broad-based macadamia nut processor and marketer after signing a letter of intent to acquire substantially all of the assets of MacFarms of Hawaii, LLC (MacFarms).
MacFarms is a vertically integrated, Hawaii-based macadamia nut processor with a leading position in the largest macadamia market in the world, the United States.
Buderim Ginger Limited Chairman, John Ruscoe, today announced the Company had signed a non-binding letter of intent to acquire substantially all of the assets of MacFarms and to lease a 3,903 acre macadamia orchard owned by Kapua Orchard Estates, LLC (Kapua), an affiliate of MacFarms.
Mr Ruscoe said the proposed transaction is subject to completion of due diligence, the satisfactory negotiation of a definitive sale and purchase agreement, finance approval as well as the approvals of the Buderim Ginger Limited Board and the members of MacFarms and Kapua. The transaction is expected to close in early August, 2008.
“We are very excited about the opportunities this acquisition will open up for us,” Mr Ruscoe said. “After the acquisition, the Company will become arguably the largest processor and marketer of macadamia nuts in the world, complementing Buderim Ginger’s long-held position as the world’s leading processor and marketer of confectionary ginger.”
“MacFarms will complement our strong global position in the macadamia market currently held by our Australian-based macadamia business, Agrimac. There are significant synergies between the two businesses, with a unique market position for both Hawaiian and Australian macadamia nuts on the global stage. MacFarms owns the second largest macadamia nut processing facility in Hawaii and markets macadamia nuts throughout the US in both industrial and retail markets under the MacFarms® brand.”
Buderim Ginger Limited is currently undertaking a Shareholders Share Purchase Plan to provide funding flexibility for acquisitions in line with the Company’s speciality foods strategy.
“The MacFarms acquisition will be a further foundation stone in this process,” Mr Ruscoe said.
Further details on the transaction will be provided once negotiations are complete.