Full support for Capilano buyout

QUEENSLAND honey producer Capilano looks set to be sold for more than $190 million to a private equity group co-led by the son-in-law of former Prime Minister Kevin Rudd.

The ASX-listed Capilano yesterday revealed the company, which has been in operations for 65 years, had received an offer from HoldCo, an entity owned by Wattle Hill and Roc Partners to purchase 100 per cent of company shares at $20.06.

Capilano’s board have unanimously backed the offer, with shares rocketing up more than 25 per cent to $19.62 by close of trade yesterday.

It will go to a shareholder vote in November.

Wattle Hill founder Albert Tse, husband of Mr Rudd’s daughter Jessica, said in a statement to shareholders yesterday that the consortium intended to retail and further invest in Capilano’s portfolio of brands, which includes its namesake as well as Allowrie, Wescobee, Smiths and Barnes.

“Our key aim is to enhance the position of Capilano’s brands in key domestic markets as well as drive expansion of brands in offshore growth markets, such as China, as a producer of premium Australian-sourced product,” he said.

“The focus will be on delivering innovative products with therapeutic and digestive health benefits in demand by Asian and Chinese consumers.”

Capilano was founded by brothers Tim and Bert Smith in 1953, and ASX listed in 2012.