Cobram Estate Olives (ASX:CBO) has signed a binding agreement to acquire California Olive Ranch, the leading producer and marketer of Californian extra virgin olive oil.
The acquisition nearly doubles CBO’s Californian olive-growing footprint and strengthens its presence in the US market.
COR operates a vertically integrated business, managing 1,870 hectares of groves in California, supplemented by over 2,500 hectares of contracted third-party groves.
It owns a modern olive mill, storage, bottling, and warehouse facilities, and markets two premium EVOO brands, including California Olive Ranch, the top-selling Californian EVOO in the United States.
COR is forecast to generate US$150 million in net revenue and US$16 million in EBITDA in FY2026 (pre-synergies).
CBO expects synergies of US$12 million in FY2027, increasing to over US$20 million annually by FY2030, through improved yields, lower grove costs, and operational efficiencies.
The total consideration is US$173.5 million, including cash (US$88.5 million), vendor notes (US$70 million), and an earn-out (US$15 million).
The deal is projected to be around 9% EPS accretive from FY27.
CBO also completed its FY26 Californian harvest, securing 3.8 million litres of olive oil—27% higher than last year.
Production from CBO-owned groves accounted for 31% of total output, up from 23% in FY25, supported by its Oliv.iQ system.
In Australia, Cobram Estate remains on track for revenue growth despite higher water costs and a slightly lower-yielding crop. First-half packaged goods sales are expected to be broadly in line with last year.