Corporate finance execution and specialist rural knowledge were to the fore when Colliers Canterbury negotiated the sale of New Zealand’s largest pork producer recently.
Colliers Christchurch Capital Solutions Advisor Ed Sparrow partnered with Colliers Rural & Agribusiness Director Richard O’Sullivan in the deal.
A domestic consortium purchased Patoa Farms Limited and the business will continue to operate near Hawarden in North Canterbury.
“We are celebrating the fact that the country’s largest pig farming operation will continue with the Sterne family vision to the forefront – it’s a great outcome for North Canterbury,” Sparrow says.
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Patoa Farms is the largest employer in the district with more than 50 staff working in the business, which encompasses properties around 900ha.
It is widely regarded as New Zealand’s largest domestic pork producer, specialising in free-farmed operations.
The business was established almost 30 years ago by the Sterne and Ravn families as a visionary project to farm pigs outdoors and at scale.
The Ravns departed the business around 12 years ago and the farm has since been owned by the Sterne Family Trust and run by Steve Sterne and his family.
Patoa Farms has been carefully stewarded and built an industry-leading reputation for animal welfare, A-grade environmental compliance, and premium production.
“The Sterne family were clear on their expectations for the buyer to preserve the business ethos and we’re delighted that we were able to bring them a consortium that ticked every box,” O’Sullivan says.
“This deal secures domestic production for a market-leading, environmentally sustainable operation and completes the legacy that the Sterne family developed.”
There was a lot of interest in the business including from international parties, other larger producers, retailers in the supply chain, high-net-worth family groups, and private capital buyers.
“Large-scale agribusiness sales are often highly complex corporate acquisitions, requiring rigorous transaction management and sophisticated deal structuring, underpinned by a deep understanding of on-farm operations,” Sparrow says.
The new ownership group includes industry leaders spanning farming, veterinary science, biosecurity policy, wholesaling, and major retail businesses.
The consortium is led by Dr David Lawton, an expert veterinarian and animal health consultant, and Nick Harris, Managing Director of Harris Farms Limited based in Cheviot, North Canterbury.
The Colliers team were selected to exclusively manage the Patoa Farms campaign.
“Colliers Canterbury is uniquely positioned to sell large-scale agri assets because it can deploy a cross-sector approach to bridge the corporate and rural divide,” Sparrow says.
“When divestment involved more than just a farm sale, the team was able to navigate the process to facilitate certainty for the business, the Sterne family, and the buying consortium.”
- Supplied by Colliers
