Private Equity News Australia - Australia's Costa Group Supports Paine Schwartz's $963 Million Buyout Offer

Australia’s Costa Group Supports Paine Schwartz’s $963 Million Buyout Offer

Costa Group Holdings, Australia’s leading grower, packer, and marketer of fresh fruit and vegetables, has agreed to be bought out by a consortium led by private equity firm Paine Schwartz Partners.

The deal values the horticulture company at A$1.50 billion ($962.6 million). Under the proposal, Costa’s shareholders would receive A$3.20 apiece for the remaining 85.16% stake that Paine Schwartz does not already own.

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The private equity firm had initially offered to buy Costa at A$3.50 a share in July, but trimmed the offer earlier this week, deeming it the best and final price. Costa’s board unanimously recommended that shareholders vote in favour of the deal.

The buyout bid comes at a time when Australia’s export markets are seeing strong demand and pricing, and Costa has been diversifying its operations to take advantage of this.

However, there are still risks associated with the uncertain operating environment, and regulatory approvals are needed before the deal can be completed.

The consortium includes British Columbia Investment Management and Driscoll’s.

The deal is expected to close in the first quarter of 2024.


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