We are pleased to have assisted New Zealand's largest organic apple producer, the Bostock Group, on its sale of 240ha of selected orchard assets to apple grower Mr Apple NZ, owned by the Scales Corporation. The sale valued at $46.5 million also includes Bostock’s 50 per cent share in Profruit, a premium juice supplier.
Russell McVeagh Corporate partner Tom Gillespie and Tax partner Greg Neill led the team advising the Bostock Group on the transaction. They also led the team advising the Bostock family on the sale of organic chicken business, Bostock Brothers, to ASX-listed Inghams Group for $35.3 million, which was announced in March 2024. Local Hawkes Bay firm Sainsbury Logan and Williams (led by Corporate partner Andrew Wares) assisted on both transactions and worked seamlessly with the Russell McVeagh team.
The Bostock Group’s Managing Director, John Bostock, said, “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 DazzleTM has strong market appeal. It is a natural fit for these orchards to be operated by Mr Apple and for the Bostock Group to continue to service its customers in other markets with Bostock’s other varieties. There is a strong cultural alignment between our two businesses, and I feel confident that any staff moving between the growers will find themselves well at home at Mr Apple.”
The transactions are subject to customary closing conditions and expected to complete in June 2024. The Bostock Group will continue to own over 2,000ha of land around the region including for growing apples, squash, onions, grain, and grapes.