Opportunity to invest in strategically diverse Australian agribusiness
Opportunity to invest in strategically diverse Australian agribusiness, providing investors with significant scale, stability of earnings and integrated platform for growth
| 30 August 2018
Based in the Riverina area of New South Wales, B.F.B Pty Ltd (B.F.B) has successfully accumulated a blue-chip cropping portfolio comprising 48,753 hectares over the last 30 years. Extensive farming assets are complemented by a diverse integrated business, with deep operational synergies, comprising logistics, a piggery, fuel and fertiliser distribution and a grain storage and handling facility operated through a joint venture with Cargill, capable of holding 400,000+ tonnes in conjunction with B.F.B’s on-farm storage facilities.
B.F.B provides investors with a unique opportunity to acquire a scale agribusiness platform with a high quality management team. Likely to be most suitable to longer-term investors, the operation is expected to attract domestic and international interest.
Terry Brabin, Chief Executive Officer and Managing Director, B.F.B said: “Through our partnership with like-minded shareholders, we have been able to achieve significant growth underpinned by scale and efficiency. As a proud employer of local staff and families, we are seeking a partner for our next phase of growth, ensuring our commitment to staff, suppliers, customers and the community.”
Brent Bechtle, Founding Partner, Proterra Investment Partners said: “We have held a very close relationship with the B.F.B team, having built up a diverse business with deep operational synergies and quality management. Financially, the investment in B.F.B has provided our investors with stable earnings, while providing exposure to attractive agricultural markets.”
PwC has been mandated as lead financial advisors and together with CBRE are running the sale process. First round offers are due at the end of September.
Vertically integrated business model, minimising the risks and volatility of grain farming.
A significant land base, spread across 28 properties in different climatic zones, minimising production risk.
Operating synergies with exposure across the supply chain with complementary businesses in logistics and freight, a piggery, fertiliser and fuel sales, grain storage and handling (Joint Venture with US agricultural giant Cargill).
Proven growth platform, with an experienced management team demonstrating an ability to acquire and integrate farmland.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.