The Elders Ltd (ASX: ELD) share price is in focus today after the company announced its acquisition of Delta Agribusiness, boosting its agribusiness footprint and offering with a $292 million cash payment and the issue of over 22 million new shares.
What did Elders report?
- Acquired 100% of Delta Agribusiness Pty Ltd
- Total cash consideration of $292 million1
- Issued 22,300,558 new Elders shares to Delta shareholders
- Strengthens Elders' presence in key local agricultural retail markets
- Welcomes Delta's agronomy and farm advisory expertise
What else do investors need to know?
This acquisition continues Elders' push to grow its scale and service offering in regional and rural Australia. Delta brings a national network of agribusiness professionals and strong client relationships.
The cash portion of the deal is subject to divestment process finalisation and completion adjustments. The share issue increases Elders' capital base, supporting the integration of Delta's people and businesses.
What did Elders management say?
Mark Allison, Elders' Managing Director and CEO, said:
Elders has a proven track record of synergy generation through backward integration. We expect that the acquisition of Delta will create meaningful value for Elders' shareholders. Delta provides us with greater exposure to key local retail markets as well as a leading agronomy and farm advisory team to complement and extend our products and services range for rural and regional Australia. We welcome Delta's management and employees to Elders.
What's next for Elders?
Elders will begin integrating Delta's operations, people, and client offerings into its broader business. The company aims to deliver additional value for shareholders by combining Delta's agronomy strengths with Elders' existing products and distribution channels.
Investors will watch for updates on the integration progress and further details on expected synergies and financial impacts over the coming months.
Elders share price snapshot
Elders shares have declined 17% over the past 12 months, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.
