J&P Turner and Bidfood looking to acquire separate segments of the T&G Global business
T&G Global has announced it is in discussions to sell its New Zealand fresh produce business to the Turner family – the original founding family of T&G – and its Fijian and Pacific businesses to Bidfood. It noted any transaction is subject to finalisation of the sale and purchase agreements and meeting certain conditions.
The sale of its New Zealand fresh produce business is proposed to include the T&G Fresh tomato, berry, citrus and stonefruit growing operations, wholesale market network, and the export, prepacking and transport businesses. It is proposed that the Turner Family will lease from T&G the properties from which relevant growing units operate. The sale to Bidfood is proposed to include T&G’s Fijian business and T&G Fresh’s Pacific Island Exports business.
T&G chair, Benedikt Mangold, said following the completion of the strategic review, the company is planning to sell these businesses as part of a disciplined long-term strategic focus on its premium, intellectual property-led apples and VentureFruit platforms, to maximise growth and shareholder value.
“Over the last 12 months, the board has conducted a comprehensive review to evaluate T&G’s long-term strategy and growth options,” said Mangold.
“We assessed each of our apples, T&G Fresh and VentureFruit business units against our growth profile, capital intensity, reliance on intellectual property, and contribution to long-term shareholder value.
“This confirmed the attractiveness, scalability and resilience of our apples and VentureFruit strategies, with intellectual property at the foundation of their competitive advantage. The apples business has been T&G’s key growth pillar for many years, and both businesses are strategically placed to capture growing market share in the premium apple category, which we estimate to be worth US$19bn by 2030.”
“At the same time, the review confirmed that certain businesses within T&G Fresh have different characteristics. While they’re operationally strong and well-managed, these businesses are more mature and less reliant on scalable intellectual property advantage than T&G’s targeted growth platforms.
“The board has agreed that long-term capital allocation and management focus should prioritise the apples and VentureFruit platforms in support of global growth opportunities, and that alternative ownership options be explored for T&G Fresh.”
T&G and its board received financial advice and support from Craigs Investment Partners in conducting the review, and Craigs will continue to provide financial and strategic advice to T&G going forward.
T&G chief executive, Gareth Edgecombe, said “both proposed owners have deep sector expertise, strong belief in the underlying businesses, and long-term strategic intent to invest and grow the operations.
“The sale will see the Turners & Growers legacy protected, with the business returning to Turner family ownership, and the sale of our Fijian and Pacific Island Export businesses to Bidfood, aligns well with their global foodservice business model and network,” Edgecombe added.
“The proposed divestments will allow T&G to maximise growth and shareholder value through our global Apples and VentureFruit platforms.”
Further details will be shared following the signing of the sale and purchase agreements, including the consideration to be received from the sales as well as the material conditions of each agreement.
Separately, T&G has been advised that BayWa Global Produce’s intention to exit its T&G shareholding remains. While BayWa has expressed its strong confidence in T&G’s long-term strategy, it is looking to exit for its own stated reasons. In response, T&G has appointed Goldman Sachs as financial advisor to assess strategic options for T&G, including a potential sale of the company.
The news followed earlier reporting that suggested plans to break up the T&G business as part of the sale process may have warded off prospective buyers looking to acquire the entire business.
