Bumper deal to secure Buderim Ginger

Improved deal will see Buderim Ginger flush with cash as it prepares to invest further in its macadamia farms and products.

All staff currently employed by Buderim Ginger with exclusive roles in the ginger division will be offered ongoing employment by the buyer. Photo Lachie Millard

A battle for control of Australia’s pre-eminent ginger manufacturer, the publicly listed Buderim Ginger, has led to a new bidder pushing aside Global Foods by slapping a $13m deal on the table to gain control of its ginger facilities and the Ginger Museum.

The improved deal from the Himstedt family, who made their money in cooking ingredients, has beaten an original $8.3m offer made in June and will see Buderim Ginger flush with cash as it prepares to invest further in its macadamia farms as well as broaden out into the highly popular plant-based proteins.

Buderim Ginger announced late Thursday night that it has entered into binding agreements with the Queensland-based Himstedt family to sell the company’s combined ginger and tourism business assets for total consideration of $13m subject to customary adjustments.

The Himstedt’s made their fortune from their family company, Queen Fine Foods, which became famous for its range of vanilla essences, food colourings, baking ingredients and food decorations.

The sale is expected to be completed in September 2020 subject to satisfaction of customary conditions precedent including Fiji regulatory approval. The net cash proceeds generated by the sale will be applied to debt reduction and working capital as the company focuses its resources on expanding the macadamia business and adjacent opportunities.

The bid from the Himstedt family easily trumps the offer from Global Foods made in June for $8.3m. At the time a number of approaches were made to the company and Global Foods made the best bid. Global Foods is mostly owned by businessman George Vasili and is also a major shareholder in Buderim Ginger with a stake of 15.86 per cent.

All staff currently employed by Buderim Ginger with exclusive roles in the ginger division will be offered ongoing employment by the buyer. Upon completion of the transaction, the company’s CEO, Andrew Bond, will also transfer with the ginger division but has agreed to join the Buderim Group board as a non-executive director.

Chairman Guy Cowan said; “We are very pleased to agree a transaction with the Himstedt family that delivers optimal value for our shareholders.”

Tom Himstedt said: “We are pleased to become the next custodian of this iconic Queensland business, and we are excited by the prospects of its potential. We hope that with the knowledge and skills of the existing Buderim Ginger team and our interest in delivering great products, we will together create an exciting new chapter. We look forward to furthering the long standing grower and customer relationships, as well as being an integral part of the Sunshine Coast community.”

The Himstedt Family is one of the most respected families in the food business in Queensland. Following acquisition of Queen Fine Foods in 1978 and until its sale in 2015, the Himstedt family built the business into an innovative food ingredient branded business.

Following the sale, China business specialist Dennis Lin, who as executive chairman of baby food company Bubs Australia has helped turn it into a $500m branded manufacturer with strong exports into Asia, is to help rejuvenate Buderim Ginger and expand it into plant-based protein foods.

The Bunderim Ginger board plans change its name to Health and Plant Protein Limited and seek opportunities in a range of plant-based protein food products.