Driscoll’s, the global leader of fresh berries, has become a critical strategic partner in a consortium that has acquired Costa Group, Australia’s largest grower, packer and marketer of fresh fruit and vegetables.
The consortium, led by Paine Schwartz Partners and including British Columbia Investment Management Corporation, has completed the purchase of Costa, which has a diverse portfolio of premium quality fresh produce, including blueberries, tomatoes, citrus, avocados, mushrooms, and table grapes.
Costa, which was founded by the Costa family in the late 1800s, is a leading global horticultural company with a strong track record of innovation and genetic development, especially in blueberries. It has operations and grower networks in every state of Australia, China, Morocco, and southern Africa, and sells its products in numerous countries around the world.
Driscoll’s and Costa have a long-standing relationship that dates back to 2010, when they formed a joint venture in Australia to market berries. Driscoll’s also uses Costa’s blueberry varieties in its expansion program in the Americas. In 2016, the two companies started a berry production company in China.
Soren Bjorn, CEO of Driscoll’s, said: “We welcome the Costa Group into the Driscoll’s family and look forward to deepening our relationship with even more deliberate collaboration across the globe. This is one of the largest equity investments Driscoll’s has ever made, which speaks to the formidable partnership and considerable value we see in the Costa portfolio and the company’s long-term future and growth prospects.”
Driscoll’s and Costa will work on specific projects to grow the global berry business, while continuing their existing arrangements in China, Australia and the Americas.
Paine Schwartz Partners is a private equity firm that specializes in investing in agriculture and the food supply chain. It has invested $5.7 billion in the sector, including a prior stake in Costa. British Columbia Investment Management Corporation is a global institutional investor with $233 billion in assets, including agricultural assets such as Viterra and mushroom and citrus businesses.
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