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Health and Plant Protein Group secures US$26m for macadamia business
After initially entering into an agreement to sell a part of its business for US$23 million, macadamia nut company Health and Plant Protein Group has secured a higher offer at a 13 per cent premium.
Lauren Croft
Firm: Thomson Geer (Health and Plant Protein (HPP) Group)
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Deal: Thomson Geer has advised ASX-listed macadamia nut grower, processor and marketer Health and Plant Protein (HPP) Group on securing a higher price for its US macadamia nut business.
Value: US$26 million
Area: Merger and acquisition
Key players: The Thomson Geer team was led by partner Eugene Fung and senior associate Thomas Gardner.
Deal significance: On 30 January 2023, HPP entered into an agreement with MNP Holdings, LLC, to sell its Kapua Orchard and macadamia nut business for a cash offer of US$23 million. Following the announcement, HPP received an offer from Hawaiian Host, LLC, to acquire HPP’s Kapua Orchard and macadamia nut business for a higher purchase price of US$26 million — a 13 per cent premium to the purchase price under the MNP offer.
The HPP board unanimously decided that the offer received from Hawaiian Host was superior to the MNP transaction and represented the best available option for HPP to meet its near-term obligations and maximise shareholder value.
The higher purchase price is expected to bring 27.6 per cent more cash available for distribution to shareholders. Through its Royal Hawaiian Orchards and MacFarms brands, HPP is the largest vertically integrated orchard to retail macadamia nut processor and marketer in the US.
