Receivers to Kailis Organic Olive Groves, KordaMentha, attracted over 40 potential bids for the organic olive oil company at the February 3 deadline for formal offers for the sale of the business, including interest from Australia, Asia and North America. KordaMentha aims to achieve a higher sale price than the $19.7 million Kailis paid for the 3900 hectares of freehold land and 1800 hectares of olive plantations. The processing business, which includes two large, high-volume cold extraction mills, would be sold as a going concern with distribution through 500 retailers in Australia and export links to seven countries.
In January, KordaMentha made an olive oil supply agreement with Woolworths that will see Woolworths range Kailis’ organic extra virgin olive oil in its Macro Wholefoods Market private label range.
Founder Mark Kailis called in administrators from McGrathNicol in November after failing to raise $8 million in capital. Secured lender Westpac was owed an estimated $15 million and in December sent in receivers to protect its position. It is now believed that Mr Kailis is trying to put together a deed of company arrangement for the business, which would deliver a return to unsecured creditors.
Kailis Organic Olive Groves started producing olive oil in 2001 and processing in 2004. It reported a $3.4 million loss in 2009-10, but raised $25.5 million to fund the acquisition of Great Southern Limited’s olive assets in WA. The company launched premium organic extra virgin olive oils and the mid-priced Splish product over the last few years but was up against a global flood of cheap and subsidised product.
Receivers and managers of health and beauty products distribution and retail business Healthzone, PPB Advisory, announced in February that it entered into a conditional agreement with Eu Yan Sang Australia Pty Ltd for the sale of the majority of businesses and assets of Healthzone Limited and its related entities. Healthzone also operates 80 franchise and 30 company-owned Healthy Life stores across Australia.
“We are very pleased to provide a positive and timely outcome with the sale of the majority of Healthzone’s businesses. This is a great result for continuing franchisees, employees, customers and suppliers of the business,” said Phil Carter of PPB Advisory. Eu Yan Sang Australia Pty Ltd is a wholly owned subsidiary of Singapore-listed Eu Yan Sang International, a 25 per cent shareholder in Healthzone.