Bunderim Ginger takes big stride toward becoming world’s leading macadamia processor
Buderim Ginger Limited has revised its full year profit forecast upwards after completing a deal that will make the Queensland food company potentially the world’s largest
processor and marketer of macadamia nuts.
Company chairman John Ruscoe said the world’s leading producer of confectionery ginger today had signed an Asset Purchase Agreement to acquire substantially all of
the assets of Mac Farms of Hawaii, LLC (Mac Farms).
“The acquisition will enable the company to increase its 2008 profit forecast as a result of both incremental operating profit and business combination benefits on
acquisition” Mr Ruscoe advised. “Full year before-tax profit is now expected to exceed $3 million, well above the $900,000 result achieved in 2007 and also strongly up on the guidance given last week when we announced our un-audited half-year results.”
Mr Ruscoe said the Mac Farms acquisition, when added to the Australian macadamia business, Agrimac, will result in Buderim being potentially the largest processor and
marketer of macadamia nuts in the world. “The business will be very well positioned to capitalize on the expected improvement in pricing in the global macadamia market over the coming years and on the long-term increase in world demand” he said. “Our overall macadamia operations will become a significant contributor to Group
operating profit in 2009 and beyond, particularly as integration benefits are realized.”
Mac Farms operates the largest contiguous macadamia orchard in the world and the second largest macadamia nut processing facility in Hawaii. It markets macadamia
nuts throughout the US in both industrial and retail markets and owns the #2 national brand for macadamia nuts in the world’s largest market.
Buderim Ginger currently operates within a few sectors outside macadamia processing. Their primary focus has been ginger processing and marketing throughout the world, but they also manufacture and distribute wholesale pasta and pastry products in Australia as well as providing ginger and other retail products within the Australian tourism marketplace.
The transaction is to be completed on August 11, 2008.