Global Foods has placed an $8.3 million bid to acquire the Buderim Group’s ginger business.
The non-binding bid would see Global Foods acquire Buderim’s ginger and tourism assets, including their factory in Yandina, Queensland and included land, plant and equipment. As well as their brands Buderim Ginger and The Ginger Factory and associated intellectual properties and subsideries Frespac Ginger (Fiji) and Ginger Head Quarters.
The bid follows a strategic review of Buderim’s ginger business, which began in 2018, that has seen the company engage confidentially with a number of interested parties over the last 12 months.
The deal would be subjected to shareholder and regulatory approvals and would allow Buderim to focus on growing their macadamia business, Chairman Guy Cowan said, which the company felt would produce higher returns than a comparable investment in ginger.
“The ginger division has been the origin and heritage of the company and while over the last three years the board has worked together with management to return the Ginger Division to profitability, we believe that by separating the macadamia and ginger businesses there is a better future for both organisations,” he said.
Principal shareholder and Executive Chairman of Global Foods has a history with Buderim and holds a 15.86% stake in shares. Mr Vasili has said he has a view to expand the ginger business as a privately-run business.
“As a long-term substantial shareholder in the Buderim Group, I support the proposed new direction contemplated by the board and I intent to remain a shareholder in the Buderim Group,” Mr Vasili said.
“Global Foods is a successful Australian family owned and operated food importing and processing business that has great synergy with the Ginger Division. We are in a unique position to invest the required capital and expertise to enable the Ginger Division to continue into the future and for the company to profitably grow with a renewed focus on the macadamia business.”
Buderim Group will also seek shareholder approval to change their name to Health and Plant Protein as part of the demerger.