Hasfarm enters into agreement to acquire Lynch Group

Hasfarm Holdings Limited, the largest tropical highlands grower of temperate flowers in Asia, has entered into a Scheme Implementation Agreement to acquire 100% of Lynch Group Holdings Limited, an ASX-listed flower company, via a scheme of arrangement. Upon completion, the scheme will produce a regional floriculture leader with production across Vietnam, China, and Indonesia, and access to premium markets for flowers and pot plants in China, Japan, and Australia.

Under the Scheme, Lynch shareholders will receive A$2.245 per share in cash, less any permitted dividend, representing a total cash consideration of approximately A$270 million. The transaction is subject to several conditions, including shareholder approval and an independent expert concluding that the Scheme is in the best interests of shareholders. Full details are available in the ASX announcement, which can be found here.

The transaction supports Lynch's growth strategy by creating a vertically integrated platform with expanded production, distribution, and logistics capabilities, particularly in China. This will provide much-needed economies of scale, as well as stability to employees, customers, and suppliers.

Dalat Hasfarm's location in Vietnam

Greater access to premium flower markets
Hasfarm Chief Executive Officer Aad Gordijn said Hasfarm believed it had put forward a compelling offer to Lynch Group shareholders and looked forward to working with the Board to progress the Scheme: "A combination of Hasfarm and Lynch Group combines the strengths and resources that would enable the business to innovate and expand across the Asia Pacific, with a greater diversity of supply and access to premium flower markets from China and Japan to Australia," Mr Gordijn said. "Hasfarm's farming operations would provide Lynch Group customers with improved security of supply, with immediate benefits for Australian retailers and consumers."

Lynch Non-Executive Director, Peter Clare, said: "The Lynch Board has carefully considered the proposed acquisition of Lynch by Hasfarm and unanimously supports the Scheme. After a thorough assessment of the strategic, financial and operational considerations, we believe that the Scheme represents a compelling opportunity for Lynch shareholders. The all-cash offer provides liquidity at a premium to Lynch's recent share price and delivers certainty of value for Lynch shareholders, while recognising the long-term potential of Lynch's assets and people under Hasfarm's ownership."

Co-Head of TPG Asia Joel Thickins said: "Hasfarm's proposed acquisition of Lynch Group is perfectly aligned to TPG's approach of leveraging its broad and deep regional expertise to build market leaders in sectors such as consumer products. Since our initial investment in Hasfarm in late 2024, we have been exploring opportunities for complementary acquisitions, like Lynch Group, to build an ever stronger, vertically integrated floriculture platform in an epicentre of global growth."

Source: floraldaily.com