OTPP Enters Into a Strategic Partnership With Montague in Australia
Ontario Teachers’ Pension Plan (Ontario Teachers’) and its Australian agriculture subsidiary AustOn Corporation (AustOn) have announced a new strategic partnership with leading Australian grower-packer-marketer Montague.
As part of this partnership, Pomona Valley, a subsidiary of Ontario Teachers’, will acquire a majority equity interest in Montague, with Scott Montague retaining an ownership stake in the business. Pomona Valley and Montague will merge to form one business with Scott taking on the role of general manager of the merged operations.
Scott Montague (featured above), managing director of Montague, said the partnership would create new opportunities.
“The partnership with AustOn and the merger with Pomona Valley signals the next exciting stage in the growth of Montague. The financial backing of a global investor in agriculture opens a range of possibilities that both businesses have been keen to explore,” said Montague.
“The merger of the two businesses will cement the combined operation as a preferred supplier to domestic and international customers well into the future.”
Christopher Metrakos, senior managing director, natural resources at Ontario Teachers’ said the organisation was committed to the long-term sustainable growth of Pomona Valley and Montague as they embark on the next phase as a merged business.
“Montague is at the forefront of the fresh produce industry in Australia, and we are excited to partner with Scott and the Montague team to continue providing innovative, sustainable, and quality produce for consumers globally,” said Metrakos.
“Ontario Teachers’ and AustOn have a proven track record in investing in the farming sector both in Australia and worldwide, and we are focused on using this experience to deliver long-term, sustainable growth of Pomona Valley and Montague as a merged business.”
Pomona Valley grows and packs significant volumes of pomefruit and stonefruit in Victoria’s Goulburn Valley. The orchards are the product of 140 years of fruit-growing legacy in the region.
With more than 70 years of operations and proud family history, Montague is a vertically integrated category leader across apples, supplying high-quality fresh produce to major supermarkets and wholesalers nationally; and into the export market.
AustOn is the Australian agriculture arm of Ontario Teachers’ and has operated in Australia since 2018. AustOn manages teams across various farms, namely Aroona Farms, which produces almonds in South Australia and Victoria, Jasper Farms, which produces avocados in Western Australia, Pomona Valley, which produces apples and stone fruit in Victoria, and Mitolo Family Farms, which produces potatoes and onions in Australia.
Completion of the transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to occur in first half of 2024.
On Monday, OTPP issued a press release stating it has entered into a strategic partnership with Montague:
SOUTHBANK, AUSTRALIA - Ontario Teachers’ Pension Plan (Ontario Teachers’) and its Australian agriculture subsidiary AustOn Corporation (AustOn) are pleased to announce that they have entered into a strategic partnership with Montague.
As part of this partnership, Pomona Valley, a subsidiary of Ontario Teachers’, will acquire a majority equity interest in Montague, with Scott Montague retaining an ownership stake in the business. Pomona Valley and Montague will merge to form one business with Scott taking on the role of General Manager of the merged operations.
Pomona Valley grows and packs significant volumes of pome and stone fruits in Victoria’s Goulburn Valley. The orchards are the product of 140 years of fruit-growing legacy in the region.
Montague is a vertically integrated grower, packer and marketer of fruit in Australia. With more than 70 years of operations and proud family history, Montague is the category leader across apples, supplying high-quality fresh produce to major supermarkets and wholesalers nationally; and into the export market.
AustOn is the Australian agriculture arm of Ontario Teachers’ and has operated in Australia since 2018. AustOn manages teams across various farms, namely Aroona Farms, which produces almonds in South Australia and Victoria, Jasper Farms, which produces avocados in Western Australia, Pomona Valley, which produces apples and stone fruit in Victoria, and Mitolo Family Farms, which produces potatoes and onions in Australia.
Ontario Teachers’ is committed to the long-term sustainable growth of Pomona Valley and Montague as they embark on the next phase as a merged business.
Scott Montague, Managing Director of Montague, said:
“The partnership with AustOn and the merger with Pomona Valley signals the next exciting stage in the growth of Montague. The financial backing of a global investor in agriculture opens a range of possibilities that both businesses have been keen to explore”
“The merger of the two businesses will cement the combined operation as a preferred supplier to domestic and international customers well into the future.”
Christopher Metrakos, Senior Managing Director, Natural Resources at Ontario Teachers’ said:
“Montague is at the forefront of the fresh produce industry in Australia, and we are excited to partner with Scott and the Montague team to continue providing innovative, sustainable, and quality produce for consumers globally.
Ontario Teachers’ and AustOn have a proven track record in investing in the farming sector both in Australia and worldwide, and we are focused on using this experience to deliver long-term, sustainable growth of Pomona Valley and Montague as a merged business.”
Completion of the transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to occur in first half of 2024.
About Ontario Teachers’
Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $249.8 billion as at June 30, 2023. We invest in more than 50 countries in a broad array of assets including public and private equities, fixed income, credit, commodities, natural resources, infrastructure, real estate and venture growth to deliver retirement income for 336,000 working members and pensioners.
With offices in Toronto, London, Hong Kong, Singapore, Mumbai and San Francisco, our more than 400 investment professionals bring deep expertise in a broad range of sectors and industries. We are a fully funded defined benefit pension plan and have earned an annual total-fund net return of 9.4% since the plan's founding in 1990. At Ontario Teachers', we don't just invest to make a return, we invest to shape a better future for the teachers we serve, the businesses we back, and the world we live in. For more information, visit otpp.com and follow us on LinkedIn.
There's not much to add on this deal except to say that OTPP is growing its agricultural operations in Australia and this partnership between AustOn and Montague will allow them to significantly scale the business over the next few years.
Pomona Valley, a subsidiary of OTPP, and Montague will merge to form one business with Scott Montague retaining an ownership stake in the business and staying on as general manager of the merged operations.
That ensures alignment of interests.
Agricultural investments in Australia are a hot area of activity as Canadian pension funds grapple with the possibility rates will stay longer for higher.
Australia is well situated to export fruits, vegetables and wines throughout the Asia Pacific region.
For example, Australia's finest wine and food is being exported to South Korea which is the latest target in a new united campaign that brings together some of Australian agriculture's biggest RDCs and industry organizations to open new export market opportunities in Asia for farmers and food producers.
This is why PSP Investments has grown its operations there significantly over the last decade and OTPP is following suit.
Agriculture isn't for everyone, you need to partner up with experienced people who know what they're doing and in this case, it's clear Motague is a leader in this industry.
Below Scott Montague talks about their passion and dedication to the apple industry and product excellence. Learn about the different taste profiles of JAZZ™ and envy™ from the Legana Orchard in Tasmania.
And Ray Montague shares the Montague story from his great grandfather to the next generation of family members who carry the passion of the Montague brand.
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