The Costa Group, Australia’s largest grower and distributor of fresh fruit and vegetables is planning an initial public offering in the first half of 2015 as part of its plan to capitalize on the increasing demand for fresh foods out of Asia. Initially, the group plans to raise between $300 and $600 million, translating into an enterprise value of between $800 million and $1 billion. The final size, capital structure, and valuation will depend upon the final holdings retained by the group’s current shareholders. Victoria-based Costa, which sold 50% of its company to Paine & Partners in 2012, is Australia’s largest producer of blueberries, raspberries, table grapes, citrus fruit, tomatoes, bananas, mushrooms and other produce, grown on 4,000 hectares of farmland and 20 hectares of greenhouse operations across the country. The group operates more than 40 wholesale market and distribution centers in Australia, however, approximately 20% of its production is exported to North America, South America, Europe, and Asia. The company’s board led by Frank Costa, has appointed Goldman Sachs and UBS as joint lead managers of the offering.
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