Macadamia nut company Health and Plant Protein Group achieves higher offer for sale of US macadamia nut business

March 14, 2023

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.

On 30 January 2023, HPP announced that it had entered into an agreement with MNP Holdings, LLC to sell its Kapua Orchard and macadamia nut business for US$23 million (cA$32.9 million) cash.

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 (cA$37.1 million) – a 13% premium to the purchase price under the MNP offer.

The HPP Board unanimously decided that the offer received from Hawaiian Host Group 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% more cash available for distribution to shareholders. The surplus available to shareholders could be higher if AUD remains below USD 70 cents.

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.

The sale resulted from a strategic review of HPP’s US assets and a sale process under which HPP held discussions with interested parties in relation to the future ownership of the Kapua Orchard and macadamia nut business.

The Thomson Geer team is led by Partner Eugene Fung and Senior Associate Thomas Gardner.

The sale to Hawaiian Host Group is due to complete in April, subject to HPP shareholder approval.

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