EP AGnFERT (EP) at Kimba on the Eyre Peninsula in South Australia, has entered into an agreement to merge with Delta Agribusiness (Delta) effective March 1, 2023.
“The addition of Troy and Kelly Maitland’s strong business into the broader Delta group continues the company’s strategy to grow and diversify its business footprint and earnings diversity,”says Delta Agribusiness managing director Gerard Hines.
“Kimba is a productive farming region on the Eyre Peninsula of South Australia.
“This development takes our business into another key production region and will deliver positive synergies to both businesses, including providing EP centralised back-end and network services support, increased capital to grow the business, and access to the scale and benefits of Delta’s overall procurement capacity .
“And for Delta it adds increased market growth and diversity.
“We have known Troy for many years, and both parties believe that we have a strong cultural alignment and are excited by our future together,” Mr Hines said.
“Importantly, Troy and Kelly Maitland through this transaction have retained a meaningful investment in the overall Delta business by taking a strong equity position as a part of the transaction consideration. Consistent with our model, this ensures strong forward alignment, and we look forward to welcoming Troy and Kelly to our shareholder family.”
Mr Maitland and his team will continue to fully manage EP on a ‘business-as-usual’ basis, and the businesses will be incorporated into the Delta operating systems and procurement functions at the end of February 2023, ready for a March transition.
“Troy and Kelly have built a substantial and successful business since inception, with a strong and credible reputation in the market and are a natural fit for our culture and our strategy. We believe this also gives us a platform on the Eyre Peninsula for further growth opportunities.”
Commenting on the partnership, Mr Maitland said: “We are proud of what we have achieved to build our business up to where it is today, but we are now at a stage where we can see we need additional resources and firepower to take the business to the next level.
“The market is consolidating, and merging with Delta, a business we know and trust, will provide us the support and collaboration to continue to execute on the opportunities ahead.
“The ability to also roll a lot of our equity into Delta gives us an opportunity to continue to stay private, maintain ownership and ‘skin in the game’, bring stronger offerings to our clients, and share in the ongoing growth and value that the Delta Group are creating.”
Mr Hines said on completion, the combined agronomic experience of the two businesses will greatly strengthen the overall value proposition to clients, as both businesses will bring new ideas and synergies to the table for the benefit of their customers.
The combined group will have more than 70 agronomist/farm consultants, and an ongoing and substantial dedication to research and development trial work.
“We look forward to warmly welcoming Troy and Kelly into our Delta family,” Mr Hines said.
