The Mr Apple-owned orchards Te Papa and Blyth sell to fund managed by Craigmore
Scales has announced that it has entered into an agreement to sell two apple orchards, owned by subsidiary Mr Apple, to a fund managed by Craigmore for a combined acquisition price of NZ$34m.
The sale included the Te Papa and Blyth orchards with a total planted orchard area of 186 ha. The transaction is subject to approval by the Overseas Investment Office. As part of the transaction, applicable fruit from both orchards will be supplied to Mr Apple for packing, storage and marketing under a long-term agreement.
In addition, to assist with orchard transition, Blyth orchard will be leased back to Mr Apple until the end of the 2027 season and Mr Apple will provide short-term management services for the Te Papa orchard.
Managing director Andy Borland said he is pleased to continue the partnership with Craigmore.
“We have worked closely with Craigmore for a number of years and are pleased to be able to further develop our partnership with them,” he said.
“Craigmore and Scales are strongly aligned in our shared vision to see the New Zealand horticulture industry and the wider community thrive through continued investment and growth.”
The sale of the orchards is expected to decrease Mr Apple’s pre IFRS16 Underlying EBITDA of NZ$4m across the medium-term. Scales said that when combined with the impact of the Bostock transaction, announced in May 2024, there will be a net impact across the two transactions of a medium-term increase in pre IFRS16 Underlying EBITDA of NZ$6m-NZ$8m.
