Australia: Buderim Ginger sells 23% stake to China’s Wattle Hill, QiaQia Food

Visual from Buderim Group website

Australia’s top ginger producer Buderim Group Ltd has inked a $20 million (AU$26.1 million) acquisition deal with China-based Wattle Hill RHC Fund 1 (WHC), and QiaQia Food Co Ltd, both initially taking 23 per cent stake of the company.

Buderim manufactures and distributes various confectionery ginger and other ginger-based products to both industrial, food service and retail operations globally, and has subsidiaries in Australia, the United States and Fiji.

“The purpose of the capital restructuring is to provide funds for a substantial reduction of bank debt and to develop the core business segments of macadamias and ginger, capitalising on the established brands held by the group including Buderim Ginger, MacFarms, Fresh from Hawaii, Agrimac, and Frespac,” Buderim said in its statement.

Also Read: Philippine food giant URC unit snaps up Snackbrands Australia for $460m

WHC and QiaQia have an opportunity to increase their stake as much as 48 per cent because of a convertible note exercisable in three years. Both investors are also allowed to appoint two directors to the board.

QiaQia is one of China’s largest modern snack production companies, specialised in roasted seeds and tree nuts.

WHC is a holding vehicle for a private equity fund which invests in Australian and New Zealand companies that benefit from China’s growth – especially companies that offer products and services in demand by Chinese consumers.

WHC was founded by Albert Tse, former lawyer in China of Australia-based investment banking firm Macquarie, and husband of Jessica Rudd, daughter of former prime minister of Australia Kevin Rudd.

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Buderim disclosed it is contemplating on projects that will increase distribution into export markets, including China, assisted by WHC and QiaQia.

The Australia-listed firm also mentioned development of in-house manufacturing capability for processes currently outsourced including drinks packaging.

Established in 1941, Buderim began as a co-operative by five Buderim farmers that later restructured to a public company on October 10, 1989. It now employs around 400 people globally with manufacturing facilities in Yandina, Queensland, Australia, Suva, Fiji and Captain Cook on the Big Island, Hawaii.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.