February 24, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Tim McGavin, founder and CEO of Laguna Bay, told GAI News in a former 2020 interview,  “I would say that Laguna Bay’s origination edge comes from our strong reputation and broad networks amongst the agricultural community. We are a private, staff-owned firm with long-term patient capital, so we control our own destiny. Our team has vast experience across different agricultural sectors. Farmers are smart, they usually know who the partner of choice is. Trust is the single most important thing for them.”

Laguna Bay’s attributes are not only building trust with farmers, but with the largest global investors too, as evidenced by the recent commitment of A$350 million (US$250 million) by the Washington State Investment Board (WSIB) to Laguna Bay Fund 2. 

As a specific purpose funds group founded in 2010, Laguna Bay is a full-service management vehicle that offers institutional investors exposure to agriculture, assuming responsibility for both assets and operational management across Australia and New Zealand.

Under this mandate, the group has established a diverse range of contracts, creating a highly respected reputation in the agricultural industry, offering access to a proprietary deal flow of off-market opportunities for investors, having invested in some of Australia’s largest producers of dairy, wine, almonds, olive oil, and more. 

The asset manager made headlines in December 2019 when it sold, on behalf of its investors,  the largest almond portfolio in Australia to Canadian pension fund giant Public Sector Pension Investment Board (PSP Investments) for over A$350 million (~US$240 million).

And in October 2020, Laguna once again demonstrated its superior management and timing when it sold Banongill Station to a local consortium of farming families for approximately A$80 million (US$57 million at the time).

Most recently, in December 2021, Laguna exited its Woorndoo aggregation, selling to two farming families: Ian and Camilla Shippen from Moulamein, New South Wales, and Clinton Ross, a cropping farmer north-east of Woorndoo, have split the property, grossing about A$70 million (US$50 million).

McGavin explained to GAI News how meaningful it was to be able to successfully realize return on investment for its investor throughout a global pandemic.

“At a time when people are seeing their superannuation balances plummet through stock market declines, we are fortunate to be in a position to help protect and build on the savings of millions of public service employees, and other investors, who put their trust in us via their LP’s,” he said. “It’s humbling, and we take this obligation seriously, especially now. We’re in regular communication with investors about the impact of COVID-19 on the Australian agricultural landscape and our investments. For LP’s, I cannot think of a better time to be invested in agriculture and food.”

Differing a bit from permanent crops, it has recently come to light that Valley Seas BidCo., a subsidiary of Laguna Bay Agricultural No.1, has reached an agreement to acquire Angel Seafood for $32 million through an all-cash deal. 

With operations in Coffin Bay, Angel Seafood has a current production capacity of 1 million oysters per year, and is noted as being the first oyster producer in Australia to be granted organic certification.

Under the terms of the deal, BidCo. will acquire all Angel Seafood shares with the exception of 16 million, which are held by company CEO Issac Halman and his affiliated entities. The value of the transaction reflects a premium of 60 percent on the company’s closing share price on December 17, 2021, and each of Angel’s directors have indicated that they consider the scheme in the best interest of the shareholders, and will unanimously recommend a vote in favor. 

“The scheme is an attractive, all-cash transaction,” said Tim Goldsmith, chairman, Angel Seafoods. “The Angel Seafood board has unanimously concluded that the scheme represents a compelling outcome for our shareholders, customers, suppliers and staff.”

Goldsmith continued, “The price is a very tangible measure of the value and quality of Angel Seafood’s position in the industry, and our recent strong performance. At a significant premium, Laguna Bay’s offer provides Angel shareholders with certainty of value and the opportunity to realize their investment in full for cash.”

*The content put forth by GAI News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. GAI and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.