Chinese firm to buy leading Australian produce supplier - FreshFruitPortal.com

Chinese firm to buy leading Australian produce supplier

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Chinese firm to buy leading Australian produce supplier

Chinese company Chevalier International is on the cusp of acquiring a 70% stake in one of Australia's leading producer growers and marketers the Moraitis Group, media agency the Australian Broadcasting Corporation (ABC) reported.

The story reported the Australian business was valued at AUD$200 million (US$209 million).

Produce Marketing Association (PMA) Australia-New Zealand CEO was upbeat about the deal, which is now in its final stages.

"It's more of a strategic investment as opposed to just a straight pure private equity play as we've seen in the past," he told the broadcaster.

"I think [it's] more long term, more looking at opportunities as to how Australian producers and fresh produce companies can supply the Asian region, particularly China, and also seeing whether through the whole value chain - where some of the very good systems that companies like Moraitis have - can be applied in Asian countries.

"I see more upside than anything else. It brings strength to these companies; rather than having debt, it's better to have equity in their businesses, coming with a large organization like Chevalier which brings a lot of other expertise and muscle."

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