Strategic Divestment

The second largest macadamia processor in Australia (and one of the largest in the world) signed contracts to sell the business to an international group. The transaction halted in late 2006. The industry was at a turning point, kernel prices had escalated to the point of buyer resistance, which led to an industry down cycle. The client wished to identify a new buyer for the business.

Client Requirements

• Achieve a strategic divestment to a new

Key Activities

• Collect, review and collate company information and other sources to develop a detailed professional Information Memorandum,
• Liaise with the client’s directors, managers, accountants and advisors to prove and clarify all data sets for inclusion in the Information Memorandum,
• Develop and present an approved Information Memorandum for distribution to shortlisted targets,
• Create a target list including: larger macadamia producers, competing processors; downstream nut processors and marketers, and other food processors not involved in the macadamia industry with strategic interest in diversification,
• Complete a confidential search process,
• Intense negotiation and interaction with the ultimate buyer to reach a Heads of Agreement,
• Coordinate contract drafting and responses to legal, commercial, financial and environmental due diligence required by the intending buyer ( a public listed company),
• Close the

Outcomes

Achieved a good price, in line with client’s expectations. The buyer was a public listed company, this was their first entry into nut processing and marketing. A good result was achieved in the most significant down cycle in the industry for two decades and the buyer has made further international acquisitions in the macadamia industry since.