A CHINESE conglomerate with interests in cars and construction will become a major supplier of fresh produce to Woolworths and Coles after acquiring control of Australia's largest fruit and vegetable wholesaler, Moraitis Group.
After almost a year of negotiations, Hong Kong-listed Chevalier Group has acquired a 70 per cent stake in Moraitis in a deal that values the company at about $210 million, including debt.
The founding Moraitis family, led by Melbourne Cup winner Nick Moraitis, will reduce its stake to 15 per cent from 50 per cent and Catalyst Investment Managers, which acquired a 49 per cent interest in 2006, will hold 15 per cent.
Moraitis supplies supermarkets and greengrocers and has interests in growing, processing and packing through joint ventures and alliances. Its annual revenue has doubled over the past five years, reaching $517 million in 2011 and $490 million in the 12 months ending June 2012. Chevalier plans to increase Moraitis's market share in Australia and boost exports to China while using the group as a platform for investment, farm management and distribution services to investors looking for local agricultural opportunities.
In the medium to long term, Chevalier plans to replicate Moraitis's vertically integrated business model and skills in farm management and retail supply chain to expand in China's fresh produce industry.
Chevalier has an existing relationship with CRE, which is the largest supermarket chain in China with about 8000 stores.
"Looking ahead, with the world's, and especially China's, continued rising demand for food to feed the ever-growing world population as well as the increasing emphasis on food safety, the group believes the acquisition will provide a platform to capitalise on the trend," Chevalier said. It has secured Foreign Investment Review Board approval.
