Camellia PLC Purchase of Bardsley England
RNS Number : 1559H
02 August 2021
2 August 2021
Purchase of Bardsley England, the UK's second largest apple
Camellia Plc (CAM.L, Camellia), the global agriculture group,
announces the purchase of an 80% stake in Bardsley England for
GBP15.7m. Camellia will also make a loan to Bardsley of
Bardsley England is a major fruit farming business and the UK's
second largest apple grower. The farming operation covers 850
hectares (2,100 acres) in Kent and includes 27 orchards growing
apples, pears, cherries, plums and grapes as well as a large
grading, packing and storage facility. Bardsley grows nearly 18,000
tonnes of fruit a year and at peak season it employs 550 staff.
Bardsley is an innovator in the use of agritech, employing
technology such as micro-climate sensors to monitor for adverse
weather and wet leaf sensors to give early indication of pests and
disease. It also uses a combination of trailer-mounted machine
vision devices and remote satellite technology to improve yield
predictions and crop management.
Bardsley's customers include major supermarkets in the UK.
The consideration, which is being satisfied from existing
resources, is payable as to GBP12.7m which was paid at completion
with the balance of GBP3m deferred and payable by July 2022. Of the
total consideration, approximately GBP9.7m is being used to
subscribe for new shares in the business with the remainder being
used to purchase existing shares. In addition to strengthening
Bardsley's balance sheet, the investment by Camellia will support
growth and ensure the business is able to invest further in
developing its packing operations and extending its orchards. The
loan mentioned above will largely be used to repay Bardsley's
Bardsley England operates through a number of UK companies. For
the year ended 31 March 2021 it had revenue of GBP22.4m* and
recorded an unaudited loss before tax of GBP1.7m*. Gross assets of
the business at that date were GBP26.2m* and net assets were
The effect of the acquisition on Camellia's profit before tax
for 2021 is expected to be broadly neutral before deal costs of
GBP1.2m but is expected to be significantly earnings enhancing in
Benefits of the acquisition
-- Camellia is a global agricultural group specialising in
bearer plants (plants that produce regular crops, such as fruit
trees). We are always looking to diversify our product and
geographical portfolio. Bardsley helps do both.
-- As part of Camellia Bardsley will have access to a wider
customer base and lower cost of finance.
-- Bardsley's packhouse operations offers synergies with
Camellia's avocado, macadamia and blueberry businesses and works
with many of the same customers.
-- Bardsley is a cash generative operation.
-- The acquisition is expected to be earnings enhancing in 2022.
-- Bardsley being in the UK will improve Camellia's effective tax rate.
Tom Franks, CEO at Camellia, commented:
"We have been looking for some time to increase our focus on
agriculture where we have deep skills, and to increase our
operations in the UK. Bardsley helps with both. It is located close
to our HQ in Kent, which is the premier region for apple growing in
the country. We look forward to partnering with the Bardsley family
in the future."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
* Bardsley England operates through a number of companies which
have not previously been consolidated. The figures quoted in this
announcement represent an unaudited proforma aggregation of the
reported results of the individual entities for the year ended 31
March 2021. The underlying results of the entities are prepared
under Financial Reporting Standard 102 and are not wholly
comparable with Camellia's accounting policies.
Camellia Plc 01622 746655
Tom Franks, CEO
Susan Walker, CFO
Panmure Gordon 020 7886 2500
Nominated Adviser and Broker
William Clutterbuck 07785 292617
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