Driscoll’s stake is significant in Costa Group

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Driscoll’s along with an alliance headed by Paine Schwartz Partners and including British Columbia Investment Management Corporation completed the purchase from Costa Group. Ownership of the company changed to the new owner today after it was removed from the ASX at the beginning of this month.

PSP was a shareholder in the publically traded Costa on October 25, 2022, after having acquired an 13.78 percent stake. In July 2023, the company presented a proposal to buy out that was accepted in September. Costa Group announced its acceptance of the A$1.5 (978 USD) billion offer for acquisition, according to them, it would be in line with a revised deal Costa was offered earlier that month in which the offer was cut from the original proposal presented by PSP in July.

In the month of January, 2024, shareholders at Costa’s were in favour of accepting the price in the amount of AUD3.20 per share. The reason for this was that it was within the appraisal of independent analyst Kroll who put the share price between $2.62 to $3.28 for each share.

Costa was established in the early 1800s through the Costa family of Geelong, Victoria, Australia. Since then, it has added a variety of fresh fruits and vegetables, which includes the increasing, commercialization, and availability of blueberries, glasshouse tomatoes fruit, avocados, citrus mushrooms as well as table grapes. Costa’s growing and production networks extends across every state in Australia, China, Morocco and the southern part of Africa. Costa is sold to many countries in the world and include Europe, UK, Asia and North America.

Costa is actively involved in the research and development of new genetics as well as plants, including blueberries. In 2023, the company released a record-breaking four new varieties of blueberries.

Based on the joint statement of both companies, this new arrangement of ownership is an logical development of the relationship that Driscoll’s has with Costa started in the year 2010. Both companies share the joint venture of Australia and is the top marketer for raspberries, blueberries as well as blackberries across Australia. Driscoll’s also operates expanded plans within the Americas with Costa blueberry cultivars. In the year 2016, Driscoll’s and Costa formalized the formation of a joint venture which supervised the establishment of an enterprise to produce berries in China.

“The Costa team is looking towards the future and working alongside the new owners who, with their long history of investing in and running top-quality agricultural properties they are determined to continue improving the capacity of the business and making sure it continues to grow,” said Costa Group’s Interim Chief Executive Officer Harry Debney. Harry Debney.

“We are delighted to welcome Costa Group into our family.” Costa Group into the Driscoll’s family and are looking at the possibility of deepening our partnership by collaborating more closely all over the world,” said Soren Bjorn the Driscoll’s CEO. “This is among the biggest equity investment decisions Driscoll’s ever made that is a testament to the strong collaboration and the immense potential value that we have seen with the Costa portfolio as well as its long-term expansion prospects.”

For the first time, Driscoll’s and Costa will begin working on specific initiatives to expand the berry industry. They have agreements with China, Australia, and the Americas are also expected in place and will not be affected.

Over the last several years, Paine Schwartz Partners has made investments of $5.7 billion in the field of agriculture and food supply chains that includes an investment in equity of Costa. The other companies it has invested in are those which grow fresh fruits and vegetables including Monterey Mushrooms, as well as agricultural technology companies like AgroFresh.

British Columbia Investment Management Corporation is a major institutional investor with $233 billion of gross assets under its management. The company’s investments in agricultural properties includes a ownership of Viterra and other citrus and mushroom business.

More details:

Michael Toby

Costa Group

Tel. : +613 8363 9071

Solana Tanabe

Driscoll’s

solana.tanabe@allisonworldwide.com

www.driscolls.com

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Source: The Plantations International Agroforestry Group of Companies