THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
The Beemart Group (consisting of Wally’s Produce and Beemart) was established in 1960 and operates as a wholesale distributor of fresh fruit and vegetables. Headquartered in Bundaberg QLD, the Business is strategically located in Australia’s ‘fruit bowl’ region, giving it direct access to a wide range of growers across the Wide Bay & Central QLD area. Beemart offers an end-to-end fresh produce service that spans wholesaling, marketing, transport, retail and banana ripening. Its core customer-base of 800+ commercial enterprises represents a diverse number of sectors including independent grocery, restaurant / hospitality, health, education, and wholesale supply. To ensure timely supply, the Business operates via several distribution points including Bundaberg, Maryborough and Gladstone as well as the Brisbane Markets.
In 2019, after almost 60 years of operation, Beemart’s founder decided to seek a strategic buyer for the Business in order to facilitate his transition into retirement. Johnsons Corporate was appointed to assist with a national divestment campaign, comprising the sale of both divisions and associated real estate assets.
The Business Sales Strategy
For prospective buyers, this acquisition presented an opportunity to enter the Wide Bay & Central QLD market through a well-structured and long-standing local business, with a history of consistent financial performance and proven ability to generate recurring revenues. Beemart’s experienced management team, established distribution platform and strong supplier relationships would additionally provide an unrivalled ability to service regional customers and thus the potential to dominate the Wide Bay & Central QLD fresh produce market.
Johnsons Corporate’s custom research & marketing focused on Wholesale Food Distributors in Australia, who had exposure to fresh produce markets. Johnsons ran a proactive direct-marketing campaign that uncovered 12+ qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer, with Offer and Acceptance secured within 12 weeks of going to market.
Despite the unprecedented challenges brought by COVID-19, Johnsons ensured that the strong vendor-buyer relationship which had been established early on was maintained throughout the prolonged due diligence and legals phases, so that ultimately the transaction was completed to the satisfaction of all involved.
(Read more about how using a Specialised Mid-Market Business Broker Approach to selling your business could get you a better outcome – just like our client).
The Related Trade Buyer
Headquartered in Acacia Ridge QLD, JE Tipper is one of Australia’s premier fresh fruit marketing, wholesaling, and logistics businesses. This acquisition brings the company a strategic footprint in the Wide Bay & Central QLD market along with a complete end-to-end fresh produce offering.
What Our Client Had to Say
"Johnsons were able to design a very effective divestment strategy and targeted marketing campaign, resulting in the timely securing of a buyer for Beemart. In addition to this, we were highly impressed with how Johnsons managed the sale process and kept it on track during what was one of the most difficult financial periods for businesses in the foreseeable past in what has been the Covid-19 epidemic. Despite the effects of the pandemic on businesses, Johnsons were able to affirm the relationship with the buying party and ensured settlement was able to go ahead and both parties attained the desired outcome."Neville & Jason Beeston, Director & Shareholder - Beemart