Key Takeaways
- Hasfarm Holdings signs Scheme Implementation Agreement to acquire 100% of ASX-listed Lynch Group.
- Shareholders to receive A$2.245 per share in cash, valuing the deal at about A$270 million.
- Transaction subject to shareholder approval and independent expert review.
- Combined entity to operate across Vietnam, China, and Indonesia with access to markets in China, Japan, and Australia.
- The acquisition aims to create a vertically integrated floriculture platform with expanded production and distribution.
Hasfarm Moves to Acquire Lynch Group
Hasfarm Holdings Limited, a leading tropical highlands grower of temperate flowers in Asia, has entered into a Scheme Implementation Agreement to acquire Lynch Group Holdings Limited, an ASX-listed company, through a scheme of arrangement.
The agreement offers Lynch shareholders A$2.245 per share in cash, less any permitted dividend, representing a total value of approximately A$270 million. The proposed acquisition remains subject to shareholder approval and the conclusion of an independent expert that the Scheme is in the best interests of shareholders.
Strategic Rationale and Market Access
If completed, the transaction will create a regional floriculture business with production bases in Vietnam, China, and Indonesia, along with expanded access to premium flower and pot plant markets in China, Japan, and Australia.
According to Hasfarm Holdings, the acquisition supports Lynch Group’s growth strategy by creating a vertically integrated platform with improved production, logistics, and distribution capacity. The combined entity expects to achieve economies of scale and greater supply stability for customers and partners.
Leadership Perspectives
Hasfarm CEO Aad Gordijn said the transaction aligns both companies’ strengths: “A combination of Hasfarm and Lynch Group combines the strengths and resources that would enable the business to innovate and expand across the Asia Pacific, with a greater diversity of supply and access to premium flower markets from China and Japan to Australia.”
Lynch Non-Executive Director Peter Clare emphasized shareholder value: “The all-cash offer provides liquidity at a premium to Lynch’s recent share price and delivers certainty of value for Lynch shareholders, while recognising the long-term potential of Lynch’s assets and people under Hasfarm’s ownership.”
Joel Thickins, Co-Head of TPG Asia, noted the alignment with TPG’s investment strategy: “Hasfarm’s proposed acquisition of Lynch Group is perfectly aligned to TPG’s approach of leveraging its broad and deep regional expertise to build market leaders in sectors such as consumer products.”
Outlook For Hasfarm Holdings
Upon completion, the acquisition is expected to establish Hasfarm Holdings and Lynch Group as a combined leader in the Asia-Pacific floriculture market. The vertically integrated model is designed to provide greater efficiency, resilience, and broader market access, benefiting growers, retailers, and consumers across the region.
