Acquisition - Buy Side - Tea Plantation in Indonesia

Industry: Food, FMCG, Agriculture

Sector: Agriculture , Horticulture

Business Description:

The tea estate was founded in 1902 by a Belgian family and in 1984 it came into the Holding group.
Largest private single tea estate in Indonesia owing an HGU (“Cultivation right”) of 2052 hectares, which next renewal comes in 2023.
It has the unique feature that green leaf is 100% hand plucked.
The plantation covers over 1700 planted hectares and employs about 2000 people.
It is located in an isolated valley, with only two pieces of land, all yearlong water supplied by mountain water sources, giving even quality and taste.
The estate has volcanic black soil and is situated near the equator, which helps with production throughout the year.
Trading with well-known buyers, Unilever amongst others.
Certifications recognized in the international tea market
Hydropower giving free electricity

Product Description:

Estate has established its own tea brand and command premium prices in export markets.
Around 3,000 tons of tea is produced annually.
The estate is currently using the CTC (Cut, Tear, Curl) method of black tea manufacture, and has a capacity to produce 55MT Green Leaf/day.
Used to manufacture 100% orthodox tea but switched over to 100% CTC manufacture in 2006. Most of the orthodox machines and the building itself are still in working order & available to restart production.

State: Indonesia

Business Type: Manufacturing

Experience: 25-50 Years

Employee: More than 500 Employees

Verified By: ILO Consulting Services Private Limited

Revenue (US$ m): N/A

Opportunity Detail: Inviting Investment / Ready to sell business - Sell

Type of Transaction 100% acquisition

Asking Price US$ 20m

Reason for Sale The company is looking for a strategic partner for a majority buyout, including a sale of the estate.