Private equity firm Paine & Partners and the Costa Group are to acquire Adelaide Mushrooms.
Completion is subject to customary conditions. Financial terms of the transaction have not been disclosed.
Under the terms of the agreement, Costa will acquire all of Adelaide Mushrooms’ assets, including its state-of-the-art Monarto production complex in South Australia, farms at Spreyton and Huon Valley in Tasmania, and Mushroom Centre at the Adelaide Markets. Adelaide Mushrooms’ chairman, Douglas Schirripa, will work with Costa’s mushroom team in an advisory capacity.
Adelaide Mushrooms services supermarkets and greengrocers, as well as institutions and food service operations across Australia. Its new 360-acre Monarto production complex, which was completed in 2010, includes 30 growing rooms, 26,000 square meters of growing space and 20,000 square meters of composting space. The company has been named the number one South Australian mushroom producer for almost 10 straight years.
Harry Debney, chief executive of Costa, says: "Adelaide Mushrooms’ operations will complement the key Costa facilities in Victoria, Western Australia and Queensland, augmenting Costa’s ability to supply locally sourced mushrooms in South Australia and Tasmania. Consumer tastes have grown increasingly sophisticated, with higher expectations for freshness and consistent supply. The integration of Adelaide Mushrooms technology and skill base will further enhance Costa’s consumer offering and our ability to supply quality mushrooms to provide a rewarding consumer experience."
Kevin Schwartz, a founding partner at Paine & Partners, says: "The acquisition of Adelaide Mushrooms is a great next step in Costa’s growth strategy. Mushrooms represent an attractive market and sizeable opportunity for Costa, given their year-round indoor production and favourable demand trends. We look forward to supporting Costa’s continued growth and success as it executes its long-term business plans."
