NEW ZEALAND – Scales Corporation, a leading agribusiness group, has purchased 240 hectares of orchard area, including 110 hectares of Dazzle apple plantings, from Bostock Group, a diversified horticultural company, for NZ$47.5 million (USD 29.3 million).
The acquisition includes a stake in the juice concentrate operation Profruit. Meanwhile, Scales’ grower-packer-exporter division, Mr Apple, plans to sell its Blyth and Te Papa orchards, totaling 186 hectares, to focus on improving margins.
“By acquiring the Bostock orchards and selling these existing orchards, Mr Apple will broadly maintain its total orchard area while achieving a meaningful uplift in its premium variety volumes,” Scales stated.
Andy Borland, Scales managing director, expressed satisfaction with the deal, emphasizing the longstanding collaboration with John Bostock and his team.
“Bostock orchards are renowned for their premium quality produce, and the orchards being transferred are optimally located, with strong strategic alignment to existing Mr Apple orchards,” Borland said.
The acquired orchards include high concentrations of Dazzle, high-color Fuji, and Royal Gala plantings. This move aims to increase Mr Apple’s premium offerings, with premium fruit expected to represent nearly 80% of Mr Apple’s 2025 fruit sales, up from 64% in 2023.
Mr Apple’s strategy is to concentrate on selling premium varieties to Asia and the Middle East. “Dazzle has been a highly successful variety for Mr Apple, and this transaction materially accelerates our strategy of increasing Dazzle volumes,” Borland explained.
The orchards acquired from Bostock include mostly mature blocks, ensuring higher volumes of Dazzle apples by 2025.
Borland emphasized the importance of driving improved margins from Mr Apple’s existing assets rather than expanding its asset base.
John Bostock, managing director of Bostock Group, also expressed his satisfaction with the sale. “I am especially pleased that Scales is acquiring these orchards. The distinction between ‘organic’ and ‘conventional’ fruit is of a lower significance in Asia, where Dazzle has strong market appeal,” Bostock said.
Scales chair Mike Petersen highlighted the strategic importance of migrating orchard mix to favor premium varieties. “PVR varieties, such as Dazzle, are more sought after than our traditional varieties, reflecting the superior color qualities and eating experience,” Petersen said.
The transaction is subject to customary closing conditions and is expected to complete in early to mid-June 2024. The sale of the Mr Apple orchards is anticipated to conclude in the second half of the year.
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