2PH Farms acquisition and capital raising

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citrus fruit on tree

Costa Group Holdings Limited has entered into binding agreements (subject to the satisfaction of customary conditions) with a group of companies (Pressler entities) to acquire the business and assets of 2PH Farms Pty Ltd and its related entities (“2PH”), a Central Queensland based citrus grower for an upfront consideration of approximately $200 million in cash.

Costa will pay an additional $31 million in July 2023 for the purchase of the ‘Conaghans’ property, where a new citrus crop is currently being planted by 2PH, subject to certain conditions.

Costa has an established relationship with 2PH, having successfully marketed 2PH citrus for over 10 years in the Australian domestic market and both the domestic and export markets this calendar year.

The total upfront funding requirement is approximately $219 million (including stamp duty and transaction costs) and is to be funded with the proceeds of a fully underwritten pro rata accelerated renounceable entitlement offer (“PAITREO”) with retail rights trading to raise $190 million and existing debt facilities.

Further information is available at the Costa Investor Centre site.