The capital structure of T&G Global, a key player in the horticultural sector, is poised for transformation as BayWa, its 74% majority shareholder from Germany, initiates a comprehensive restructuring and debt reduction. T&G Global is now officially on the market, as confirmed by BayWa.
T&G Global has appointed Craigs Investment Partners to examine strategic alternatives and indicated a high level of interest from potential buyers. According to a stock exchange notification, T&G Global mentioned: "This includes sharing initial business information to determine if, in the future, it is appropriate to explore any form of sales process for any of its divisions."
The announcement followed reports in the Australian Financial Review, suggesting strong interest from two Australian private equity funds with existing investments in the fresh produce sector, eager to acquire assets of T&G. ROC Partners, known for its 25% share in NZ Rural Land Company and full ownership of Melbourne's Freshmax Group, and Macquarie Asset Management, which recently acquired a major stake in Fresh Produce Group, are identified as interested parties.
It has been reported that Craig's Investment Partners intends to initiate a formal sale process with an information memorandum expected in July.
Founded 125 years ago by the Turner family, T&G Global employs 1,600 individuals and engages in the cultivation, marketing, and distribution of fresh produce across more than 60 countries. The company focuses on apples, tomatoes, citrus, and blueberries, collaborating with over 800 independent growers. The 2024 revenue reached $1.3 billion, including $100 million from Australia, with an operating profit of $12.7 million. Two-thirds of revenue is derived from the apple segment, generating $44 million in operating profit. The company markets premium apple varieties such as Envy and Jazz, alongside commercial ones like Royal Gala, Pacific Rose, and Pacific Queen.
Market speculation regarding a potential sale process has boosted T&G's share price from $1.50 to $1.90, with a market capitalization of $236 million, distributed over 122 million shares.
Source: Farmers Weekly
