EP AGnFERT to merge with Delta Agribusiness
We are very pleased to announce that Kelly and I have agreed to merge our business with fellow independent Delta Agribusiness (Delta Ag), effective March 1, 2023.
The merging of Delta Ag and EP AG n FERT (EP) allows us to combine our business with a culturally aligned independent, that will provide the financial, systems and procurement firepower to take our business at Kimba forward in a rapidly consolidating market.
By joining forces with Delta, we will have access to a much higher level of capital, as well as their much larger national purchasing power that we believe will only increase our support, commitment and value to you, our clients.
Kelly and I, through this transaction will maintain a large investment in the business by taking a substantial equity ownership position in the combined business and will become a highly valued and important shareholder in the Delta Ag group. At EP, we will continue to manage the business in the same way we currently do, and the same friendly and reliable faces will continue in the branch network.
Importantly, both EP and Delta Ag are privately owned and independent businesses. We see this as very important as it aligns with the way we operate our business, and our desire to ensure that the much larger listed and foreign owned corporates have strong and capable competitors that are investing in and competing in regional Australia.
Delta Ag has a very strong footprint and presence in NSW/Sthn Qld, Vic, Western Australian, and South Australia, after the recent merging with Cox Rural in June this year and have a continued strategic desire to broaden their geographic and seasonal diversity into other regions and markets that makes sense. This creates a more balanced overall agribusiness to deliver enhanced long-term diversity and sustainability, with the merger with EP adding to the geographical footprint into SA.
“Delta Agribusiness is a company I see as the ideal fit to take our business to its next stage of growth. Additionally, the Delta Ag shareholder model allows our EP team to invest in the merged business if they choose to. This is a great opportunity for our highly valued team to be able to become a shareholder and share in the success of the overall business. The increased scale of the combined businesses provides further career opportunities for our team, and we believe will only build on the positive outcomes that we strive to deliver to our clients”
About Delta Agribusiness
Originating in Southern NSW in 2006, Delta Ag has grown strongly over the past 16 and a half years to become a major and highly respected independent supplier of farm inputs, agronomy, and advisory services, technology solutions, as well as grain marketing, livestock and property, and seasonal finance solutions to its customers across Australia.
Delta pre-merger operates out of 60 company owned locations and has 40 independent wholesale customers across WA, through its business there, David Grays Aglink.
Delta Ag is privately owned by 120 shareholders, most of whom work in the business, and it employs around 385 people. The Delta business is built on a foundation of providing its clients with independent and experienced agronomy and advisory services with an overarching focus on adding tangible value to its client’s businesses. Delta Ag is passionate about sustainable agriculture at all levels, and is highly committed to investing in the rural communities that it operates in.
To understand the company more thoroughly, we invite you to visit the website www.deltaag.com.au
Gerard Hines, Managing Director of Delta Ag explains the relationship with EP, “Our Company is delighted to welcome Troy and Kelly and the EP team into our business. Delta Ag is built around the best people, innovative client offerings, and long-term relationships and partnerships with our clients and suppliers, which is completely aligned with the values and beliefs of EP.”
Speaking about the merger, Gerard added, “It’s important to understand that Troy and Kelly have not sold out of their business, quite the contrary in fact. Troy and Kelly have via this transaction reinvested a large proportion of the transaction consideration into the expanded business and Troy maintains his management and leadership position to ensure continuity across the business. This means Troy and Kelly retain a high level of “skin in the game” and maintains an unfettered desire to ensure EP continues its proud tradition in the Kimba region.
It is important to note that Troy and his team will continue to operate the business as is, with retained autonomy and management initiative. The combined commercial and agronomic experience will greatly strengthen the overall value proposition to clients, as both businesses will bring new ideas and synergies to the table for the benefit of our clients. The combined group will have 70 agronomist/farm consultants, and an enhanced commitment to research and development trial work.
The merger will ensure that the management, staff and the products and services we provide will remain just as they have been, but with the added strength of a stronger resource base to meet our customer’s needs.
As an EP/Delta client it will be business as usual. You can expect to continue to receive the same trading models, quality advice, and products and services along with maintaining the heavy community involvement that currently exists. Importantly, you will be able to continue to trade normally without interruption. All existing EP Rural customers debtor accounts will remain as is, with existing commercial agreements retained.
The below slide demonstrates the combined regional diversity created by the merger. The merger will also give you some increased options for other segments of your business. For example, Delta Ag has a highly successful Precision Ag offering, and is leading the way on this front across major parts of its footprint. Additionally, Delta’s seasonal finance products will be available to EP customers via this merger.
If you have any queries around this communication, please feel free to contact me. This deal is set to complete on March 1, 2023, so business as usual until then, and then also post integration.
EP AG n FERT