Antony Lynch (Director M&A Partners) with Laura McBain (MD Primary Opinion ASX code: POP) and Ulli Spranz (Founder B.-d.Farm Paris Creek) at the Primary Opinion AGM yesterday. Since the transaction was announced POP share price has more than doubled which is a great endorsement. M&A Partners acted as corporate advisor to B.-d.Farm Paris Creek in the sale to Primary Opinion.
M&A Partners is pleased to confirm that its client, B.-d. Farm Paris Creek Pty Ltd has entered into a binding agreement with Primary Opinion (ASX:POP) to sell 100% of the business for $34m.
B.-d. Farm Paris Creek is Australia’s largest vertically integrated biodynamic and organic dairy business based in the Adelaide Hills, South Australia.
In June 2017 B.-d. Farm Paris Creek appointed M&A Partners, a Melbourne based corporate advisory firm specialising in FMCG and agribusiness, to assess strategic options for the company going forward. Post strategic review, M&A Partners initiated a competitive sales process in September 2017 in order to identify an appropriate strategic acquirer for the business.
After an extensive two-month process, Primary Opinion was selected as the successful bidder.
Antony Lynch, Managing Director at M&A Partners said “Given the unique nature of this asset and the current strength in the Australian Dairy sector we received a high level of interest in the business. from both trade and private investors, both locally and overseas.
“Overall, Primary Opinion presented the most compelling vision for the future of the business”.This is an outstanding result for both our client and Primary Opinion. B.-d. Farm Paris Creek is a one of a kind strategic asset which has been instrumental in pioneering biodynamic organic dairy farming & processing in Australia.”
B.-d. Farm Paris Creek was founded by Helmut and Ulli Spranz in 1995. The Company produces a range of premium biodynamic and organic dairy products including milk, cheese, yoghurt and butter. The Brand is well known in the South Australian market where it has dominant market share of organic dairy.
The founders, Helmut and Ulli Spranz are pioneers of biodynamic organic farming in Australia. Their first dairy farm was acquired in 1987 in the Adelaide Hills and adopted the practices and principles learned from their experiences as young dairy hands in the Swiss Alps. They are considered leaders in the conversion of farms to organic and biodynamic techniques. Ulli and Helmut also lead by example with their own farms. They will stay in the business in the transitional stages and continue to provide services to convert more farms to organic and biodynamic as well as supporting existing farm suppliers.
Throughout the sale process the Primary Opinion team led by Laura McBain (previously CEO at Bellamy’s) consistently demonstrated a strong commitment to growing the Company’s organic milk supply, investing in the B.-d. Farm Paris Creek brand and upholding the principals and culture of the B.-d. Farm business. With less than 0.5% of Australia’s total milk production being organically produced, B.-d. Farm Paris Creek see tremendous growth opportunities both in Australia and China.
The acquisition by Primary Opinion brings together two iconic South Australian brands in B.-d. Farm Paris Creek and Maggie Beer (48% owned by Primary Opinion) which will no doubt create synergies down the track for both businesses.