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Organic Farming Company Equity Stake For Sale in Chile Chico, Chile

Cherry orchard in Patagonia seeking investment. Scaleable to 6x for an export-focused production.
This Business is on a Premium Plan
Established 10-20 year(s)
Employees 2 - 5
Legal Entity Limited Liability Company (LLC)
Reported Sales USD 300 - 400 thousand
Run Rate Sales USD 380 thousand
EBITDA Margin Nil
Industries Organic Farming + 1 more
Locations  Chile Chico
Local Time 2:42 AM America / Santiago
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 2.2 million for 50.0% stake (Native Currency: CLP 1,975,000,000)
Reason: The funds will be used to capitalize operations, expand plantation activities, and introduce additio... View More
Includes physical assets worth USD 4.4 million
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Business Overview
Agricultural company dedicated to the production of cherries in Chile Chico, Patagonia, with a field of 152 hectares and approximately 15 hectares currently in production, plus additional areas ready for plantation that allow projecting a growth close to 3 times the current volume. The orchard has around 26,000 trees in production and an effective area of cherry trees close to 58 acres. In the last season, 171,594 kilos of cherries were harvested: 138,805 kilos exported as Cat 1 within the standard, 5,735 kilos exported as Cat 1 outside the norm and 27,054 kilos sold to the domestic commercial market. Cat 1 export sales (inside and outside the norm) reached approximately US$ 325,507, plus local commercial sales of about CLP 7.9 million. The company focuses on the southern hemisphere counterstation window to supply high-value markets and maintains a stable trade relationship with an exporter/packer (e. g. Greenex) who is responsible for packaging and export. Currently, the company has no bank debts or external loans and is 100% financed with the operation. Operational profitability (EBITDA) is now zero due to the development stage of the project and the production input curve of the orchards, but there is a significant potential for improvement by increasing exportable volumes and optimizing costs per kilo. Business has an operational license. We hire part time staff based on the harvest.
Products & Services Overview
Production and sale of fresh cherries, mainly of the varieties Kordia, Lapins, Regina and Skeena. The fruit is mostly marketed as a category 1 (within the standard) under brands of an exporting partner, targeting international markets. A smaller volume of fruit outside the norm or of commercial calibers is sold on the domestic market as commercial fruit (pre-caliber, commercial and usable waste).
Assets Overview
Tangible assets: 152 hectares of agricultural land worth CLP 3.95 billion in Chile Chico, Patagonia; established cherry orchards (approx. 15 has currently in production and additional area ready to plant); around 28,000 cherry trees; water rights and accumulation lock for irrigation; technical irrigation and frost control systems; manager house with warehouse and parking; pump house and Las Mercedes pump house; drinking water ponds; fuel pond (oil); greenhouse; tractor and tool shed; parking lots; warehouses for fertilizers and Herbicides with shower for applicators; tool cellars; kitchen, dining room, separate bathrooms and showers for men and women; dormitories for temporary workers; administrative office; agricultural machinery (tractors, agrochemical application equipment, cherry tree handling and harvesting equipment) and other infrastructure associated with the fruit operation. Intangible assets: favorable agroclimatic conditions and location in Patagonia that grant a window of production counterstation for the export of cherries; accumulated technical experience in the management of cherry trees; and established commercial relations with exporters/packing such as Greenex for the international marketing of the fruit. All these assets are part of the transaction of incorporation of a new partner.
Facilities Overview
The field is located in Chile Chico, Patagonia, with a total area of 152 hectares of own land, of which part is planted with cherry trees (approx. 15 ha in production and additional area ready to plant). It has an irrigation accumulation lock, water rights and a technical irrigation and frost control system. Facilities include manager's house with warehouse and parking, pump house and Las Mercedes pumps house, drinking water ponds, tractor and tool shed, vehicle parking, greenhouse, fertilizer and herbicide cellars with shower for applicators, tool cellar, kitchen and dining room, separate bathrooms and showers for men and women, temporary bedrooms (approximate capacity for 25 workers according to a prior description) and an administrative office. All these facilities are located within the property and are part of the agricultural operation.
Capitalization Overview
The company is structured as a limited liability company and is financed entirely with the operation. It does not register bank loans or external financial debts. Ownership is concentrated among these four partners (exact percentages not specified). Three of the four partners wish to exit the business in whole or in part, so approximately 50% of the property is offered to a new investor, maintaining the remaining percentage among the current partners. This offer implies a total valuation of the business of the order of CLP 3850000000 million, which includes land, water rights, established orchards, developing plantations, irrigation infrastructure and machinery.
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2 Investors contacted this Business this month. Register below to connect now!
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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