John Bostock, owner of Bostock Group, at a recent event in Hastings promoting ethical farming with the NZ Symphony Orchestra. Photo / Warren Buckland
John Bostock, owner of Bostock Group, at a recent event in Hastings promoting ethical farming with the NZ Symphony Orchestra. Photo / Warren Buckland
Hawke’s Bay horticulture giant and one of the country’s leading growers, Bostock Group, is advertising that “some or all of its business” is up for sale.
It remains unclear whether the sale is part of an investment strategy to raise money for the group, or if owner John Bostock wantsto call time on his horticulture empire which he started in the 1980s with his late wife.
Bostock Group boasts about 2500ha of orchards and growing land around Hawke’s Bay used for growing apples, squash, onions, and grain.
It also caters for chicken farms, and that 2500ha includes both owned and leased properties.
In an advertisement published in Hawke’s Bay Today, it stated Bostock Group “is undertaking a sale process in respect of some or all of its business and assets”.
Bostock Group owner and founder John Bostock was contacted for comment, but a representative from his company said they would not be commenting.
The advertisement also noted, “the transaction structure has not yet been finalised” and may comprise a “sale of shares” or an “investment into that entity” or a sale of “some or all of its assets of the Bostock Group”.
The advertisement about the potential sale. Photo / NZME
Bostock Group (which includes Bostock NZ) is a major employer in Hawke’s Bay with 200 permanent staff and up to 800 staff in the peak of the season, with the company exporting across the world.
ASB chief economist Nick Tuffley said he could not speak into this specific situation, but it was not unusual for companies to sell off an asset or division of a business to refocus on a particular area, or simply to get debt levels down.
He said it was also important to have cash reserves.
“As they say cash flow is king in a sense.
“Having positive cash flow ... that means that you keep on covering your ongoing costs of operations.”
He said options to raise cash flow included taking on more debt, getting more shareholder capital, or “selling down any assets that you see as not core or less important”.
Tuffley said businesses with high levels of cash reserves and low debt may also see opportunities to buy competitors under financial pressure, with an example being investor Warren Buffett.
John Bostock (centre) is a leader in the Hawke's Bay horticultural industry. Photo / Warren Buckland
According to information released from a sale flyer, sent to prospective buyers regarding Bostock Group, the company is forecasting $200 million in revenue during the 2024 financial year, with most of that revenue coming from apple exports.
Bostock Group is owned by an umbrella company, JB Nominees Ltd, which is also owned by John Bostock.
Craigs Investment Partners, in Auckland, is in charge of managing the sale process and has been contacted for comment.
A Hawke’s Bay grower, who did not want to be named, said it had been an extremely tough couple of years for growers in the region.
The grower said a “trifecta” of Cyclone Gabrielle, Covid, and the Ukraine war had resulted in devastation to orchards, labour shortages, and global market disruptions.
“There is one thing that is a good idea if you have just been through this sort of trauma, and that is make your balance sheet strong,” the grower said.
Bostock Brothers Ltd, a free-range chicken company, is half owned by Bostock Group and half owned by Ben and George Ltd. That company is also open for investment or sale.
