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Australian agribusiness Elders Limited (ASX: ELD) has entered into an agreement to acquire 100% of the shares in Delta Agribusiness Pty Ltd (Delta) for an enterprise value of $475 million. 1

Established in 2006, Delta is an Australian agribusiness providing a range of products and services through a network of 68 locations and approximately 40 independent wholesale customers. Delta’s farm inputs business includes crop protection and seeds, animal health products, fertilisers, fuel and general merchandise, as well as an in-house agricultural chemicals and animal health private label brand. Delta also delivers farm advisory services through its team of agronomist and Precision Agriculture specialists.

Delta’s leadership team and operations will remain unchanged in line with Elders’ light touch integration strategy. Both networks will remain operating as they do today, so that customers will continue to experience the same high level of service from both Elders and Delta teams, and the strengths of the respective networks is retained.

Managing Director and CEO Mark Allison said that rationale for this transaction between Elders and Delta is strong. 

“All decision making at Elders is underpinned by an ambition to provide the best service for our clients and customers and the acquisition of Delta supports that. Delta provides us with greater exposure to key local retail markets as well as a market leading agronomy and farm advisory team to complement and extend our products and services range for rural and regional customers, particularly in New South Wales, North West Victoria and South Australia and Western Australia,” Mr Allison said. 

“It will also enhance Elders’ existing technical service network and its offering in Ag Tech and precision agriculture, through Delta’s farm advisory business and respected network of specialists.

“Elders has a proven track record of synergy generation through backward integration and anticipates the acquisition will create meaningful value for Elders shareholders.” 

Delta management and employees will remain unchanged in line with Elders’ light touch integration strategy. Delta Managing Director and Co-Founder Gerard Hines said, “There is strong cultural alignment between Elders and Delta, as two trusted agribusinesses seeking to create value for our customers. 

“Our management team will remain unchanged and we are excited to be able to continue to provide our customers with innovative and value adding business solutions with the added support of Elders.”

Completion of this acquisition is subject to customary conditions and ACCC clearance. This is expected to occur in the first half of calendar year 2025.

For more information on the transaction and the associated Equity Raising, visit Elders Investor Hub.

1. Excluding transaction costs of $21 million and $19 million Delta lease liabilities as at 30 June 2024. The purchase price is subject to typical adjustment mechanisms relating to working capital and debt and debt-like items at completion.

Elders enters into agreement to acquire Delta Agribusiness