Costa Group to Acquire Adelaide Mushrooms
New York, NY-
By ANUK Staff
2.7.13
Global private equity investment firm Paine and Partners, LLC and the Costa Group, leading Australian grower and marketer of fresh produce, announced Costa’s entrance into a definitive agreement to acquire Adelaide Mushrooms. Financial terms of the agreement were not disclosed, according to a press release.
Costa is set to acquire all of Adelaide Mushroom’s assets, including its state-of-the-art Monarto production complex in South Australia, farms at Spreyton and Huon Valley in Tasmania, and Mushroom Center at the Adelaide Markets. Douglas Shrirripa, Adelaide’s chairman, will continue to work with Costa in an advisory role.
The number one South Australian mushroom producer for 10 years, Adelaide Mushrooms services supermarkets and greengrocers, as well as institutions and food service operations across the country. The new Monarto 360-acre production complex, which was completed in 2012, includes 30 growing rooms, 26,000 square meters of growing space and 20,000 square meters of composting space.Chief Executive of Costa Harry Debney said, "Adelaide Mushrooms' operations will complement the key Costa facilities in Victoria, Western Australia and Queensland, augmenting Costa's ability to supply locally sourced mushrooms in South Australia and Tasmania. Consumer tastes have grown increasingly sophisticated, with higher expectations for freshness and consistent supply. The integration of Adelaide Mushrooms technology and skill base will further enhance Costa's consumer offering and our ability to supply quality mushrooms to provide a rewarding consumer experience."
Kevin Schwartz , a founding Partner at Paine & Partners, said, "The acquisition of Adelaide Mushrooms is a great next step in Costa's growth strategy. Mushrooms represent an attractive market and sizeable opportunity for Costa, given their year-round indoor production and favorable demand trends. We look forward to supporting Costa's continued growth and success as it executes its long-term business plans." 
