MacFarms sale closes
The world's biggest almond seller, Blue Diamond Growers, completed the sale of its Hawaii subsidiary, MacFarms of Hawaii, yesterday for an undisclosed amount to Sparks Corp. and Greater Pacific Food Holdings.
The sale allows MacFarms, which grows and processes macadamia nuts on about 4,000 acres of land in the Kona area of the Big Island, to expand its business activities, said Rick Vidgen, president of MacFarms.
"We're excited about the opportunity. We think it will be good for business," Vidgen said.
All 45 regular employees and 140 seasonal hires will be retained and there will be no major changes at the company, Vidgen said.
MacFarms also buys nuts in shell from about 350 independent growers.
Tennessee-based Sparks Corp. is a family-owned company that has interests ranging from real estate to feed lots and finance, Vidgen said. California-based Greater Pacific Food Holdings primarily sells, markets and distributes specialty foods, and has its own boutique food brands.
"It means we will end up with a lot more entrepreneurial skills," Vidgen said. "I think they'll be able to provide us with a lot of assistance."
In recent years, business has been tough for local macadamia growers because of cheaper overseas competition coming primarily from Australia. However, with the slide of the U.S. dollar and a now stronger Australian dollar, the country's producers will have a more difficult reducing prices, Vidgen said.
Previously, Australian producers competing for the U.S. market had been able to lower prices without affecting their returns, Vidgen said.
MacFarms of Hawaii has changed ownership several times in recent years. In 2000, it was bought by Blue Diamond Growers, the Sacramento-based almond cooperative. But the company later decided to focus on its core business and put MacFarms up for sale.
In 1986, MacFarms was purchased by Arnott's Biscuits Holdings, an Australian-based food business. Arnott's was later acquired by U.S. food conglomerate Campbell Soup Co., which subsequently sold it to Blue Diamond.
Arnotts bought MacFarms from its original owners, a local partnership which formed the company in 1981.