Elders announces Delta acquisition

Elders (ASX:ELD) has announced its acquisition of Delta Agribusiness Pty Ltd for $475 million. Delta, a prominent Australian agribusiness, operates across 68 locations. This strategic acquisition aligns with Elders' focus and aims to enhance its presence in New South Wales, Victoria, South Australia, and Western Australia.

Elders' strategic growth through acquisition

Elders' acquisition of Delta Agribusiness for $475 million is a strategic move to expand its market presence and expertise in key regions. This deal is poised to generate $12 million in annual net EBITDA synergies over three years and boost EPS accretion significantly by 2024. Elders plans to fund the acquisition through a combination of equity raising, loans, and new shares for Delta shareholders. The acquisition is expected to be finalized in the first half of 2025, pending regulatory approvals. Elders aims to maintain Delta's culture while enhancing its agricultural technology services, aligning with its long-term strategic goals.

Executive insights on acquisition

Elders' Managing Director and CEO, Mark Allison, emphasized the strategic fit and growth potential from the acquisition. Delta's Managing Director, Gerard Hines, highlighted the cultural alignment and continued focus on delivering value to customers with Elders' support.