Costa to acquire Lankester Avocado business in Australia
Australian horticultural company Costa Group has signed an agreement in conjunction with Macquarie Agricultural Funds Management (MAFM) to acquire Lankester Avocado orchards and its packing operations.
Financial details of the transaction have not been revealed by the companies.
Under the terms of the deal, MAFM will purchase Lankester’s three farms in Atherton, Queensland, as well as sign a 20-year lease with Costa to operate them.
This is the second acquisition carried out jointly by Costa and MAFM.
Costa Group CEO Harry Debney said: “This strategic acquisition is another step in executing our strategy to build avocados into our fifth vertically integrated core produce pillar.
“Our production and supply period will now span from February to August, bringing us closer to achieving 52-week supply and our ultimate goal to be the number one grower, packer and marketer of avocados.”
Lankester has total plantings of 130ha across the three farms and is also involved in packing and marketing activities for third-party growers.
The company is planning additional 60ha plantings over the coming 12 months.
Debney further added: “With the current circa 370ha of avocados Costa has in central Queensland and the South Australian Riverland, this acquisition will bring the company’s total plantings to circa 500ha and allow us to continue to build our production scale.”
The transaction is expected to be closed later this month.
Costa operates principally in five core categories, including berries, citrus and glasshouse tomatoes.