Ontario Teachers’ Pension Plan purchase majority ownership of Mitolo Family Farms

A majority stake of Australia’s biggest potato wholesaler has been purchased by a massive Canadian superannuation fund.

Australia’s biggest potato wholesaler has sold a majority stake in their family business, with a giant Canadian super fund taking control.

Ontario Teachers’ Pension Plan Board and its Australian agriculture subsidiary AustOn Corporation have announced a deal with South Australia’s Mitolo Family Farms.

For an undisclosed sum, AustOn will acquire a majority equity interest in Mitolo Family Farms, with the Mitolo family retaining a significant ownership stake.

The deal is expected to occur by June 30 this year, and is subject to regulatory approvals and other customary closing conditions.

The transaction does not include Mitolo Wines, with the business to continue to operate under the Mitolo Family Farms brand and leadership

Mitolo Family Farms is one of Australia’s largest horticultural producers with 51,000ha of land and 700 staff.

Mitolo Family Farms managing director Frank Mitolo said the deal will give the company significant capital investment for future development.

“The family realised that the additional capital would require partnering with the right investor who understands the cyclical and long-term nature of agriculture, and we believe Ontario Teachers’ is the ideal partner with which to take the business forward,” he said in a statement.

Mitolo Group's Darren Mitolo, Frank Mitolo and John Mitolo.

Ontario Teachers’ natural resources senior director Christopher Metrakos said their new partnership with Mitolo was centred around expansion.

“We are excited to partner with the Mitolo Family Farms to grow the company’s ambitions and further increase the quality and reliability that has made it a category leader in Australia over the past 50 years,” he said.

“Ontario Teachers’ and AustOn have a proven track record in investing in the farming sector both in Australia and worldwide, and we are focused on using this experience to deliver long-term, sustainable growth with Mitolo Family Farms.”

In 2016 Mitolo purchased Oakville Produce from administrators in 2016, which saw turnover and staff numbers double and they also purchased Thomas Foods International’s fresh potato business in 2019.

Frank Mitolo’s father, Bruno Mitolo, first established the company in 1972, while John Mitolo and Darren Mitolo comprise the executive leadership team.

AustOn was launched as the Australian agriculture arm of Ontario Teachers’ in 2018, since acquiring multiple permanent plantings farms including Aroona Farms, which produces almonds in South Australia and Victoria, Jasper Farms and Pomona Valley, which produces apples and stone fruit in Victoria.