Delta Agribusiness has clarified to Rural Business the investor restructure process that it’s now undertaking, along with its future growth plans, following speculation fuelled by several press reports of potential options under consideration.

Delta Ag managing director, Gerard Hines said while the company had commenced a process to find a new financial partner, there are no plans or considerations to float or sell the business in a trade sale to a competitor.

“We are very proud of this company and intend to continue to operate as a private and independent agribusiness, investing in regional Australia, to attract and retain the best people, and to retain our inclusive shareholder model that allows our employees to invest in the business.

“We are open to the right new investor partner taking a more substantial equity holding (than the 24 per cent currently held by Odyssey) to help drive and support our ongoing growth strategies, as we continue to build out our national business, however it’s very important to us that we retain our private and independent culture, our strategic approach to investments, and our ‘one team’ approach that drives significant value for all stakeholders.”

Delta Ag has engaged UBS to run a process to find an aligned new financial partner, because under the structuring of its limited term fund arrangement, minority shareholder Odyssey PE plans to return funds to its investors over the next one to two years in line with its investment model.

We have no intention or desire to float the company – that’s media speculation, likewise we are not looking for a trade sale to a competitor, and have not held any discussions on that front,” Mr Hines said. “We have a long runway of opportunities in front of us and want to continue to grow with culturally aligned businesses and people, and to keep a healthy balance of independent players in the agri services marketplace,” Mr Hines said.

Delta Ag’s shareholder model – comprising 120 shareholders, (the majority of whom work in the business) and strategic partnerships with like-minded businesses is credited with creating value for customers, shareholders, employees, and suppliers, resulting in significant growth of the business across the country.

Thanks to recent mergers and acquisitions of well-known independents, including the large WA rural businesses of David Grays AgLink as well as Southeast Rural Traders in Esperance, Cox Rural in South Australia, and North West Ag and AGRIvision Consultants in Victoria, Delta Agribusiness has grown to become Australia’s third biggest rural supply and services group with 60 company-owned stores across the country.

Originating in Southern NSW in 2006, Delta Ag has grown strongly over the past 16 years to become a major independent supplier of farm inputs, agronomy, advisory services, and Precision Ag solutions, as well as engaging in grain marketing, livestock, and property, and providing seasonal finance solutions to customers across Australia.

Its brands include Delta Ag, Lachlan Fertilizers Rural in NSW, North West Ag Services and AGRIvision Consultants in Victoria, David Grays Aglink and South East Rural Traders in Western Australia and Cox Rural in South Australia. Together, the Delta Ag owned businesses employ around 400 people, and has annual sales revenue approaching $800m.

Delta Ag is also the co-founder and major shareholder in agtech provider Goanna Ag that operates in Australia and the US.