Canadian pension fund acquires majority stake in Mitolo Family Farms, Australia's largest potato supplier

Mitolo Family Farms is pleased to announce that it has entered into a strategic partnership with Ontario Teachers’ Pension Plan Board (Ontario Teachers’) and its Australian agriculture subsidiary AustOn Corporation (AustOn).

As part of this partnership, Ontario Teachers’ will acquire a majority equity interest in Mitolo Family Farms, with the Mitolo family retaining a significant ownership stake.

Mitolo Family Farms is a vertically integrated grower, harvester, packer and marketer of fresh potatoes and onions in Australia, with a portfolio representing one of Australia’s largest horticultural land aggregations.

With more than 50 years of operations, Mitolo Family Farms is the category leader across potatoes and onions, supplying high quality fresh produce to major supermarkets and wholesalers nationally.

Ontario Teachers’ is a global investor with net assets of CAD 247.2 billion (USD 183.1) as at December 31, 2022. Ontario Teachers’ invests in more than 50 countries in a broad array of assets to deliver retirement income for approximately 336,000 working members and pensioners.

The plan takes a long-term view on their investments to provide retirement security for their members and help portfolio companies grow for decades to come.

AustOn is the Australian agriculture arm of Ontario Teachers’ and has operated in Australia since 2018. AustOn employs teams to manage Aroona Farms, which produces almonds in South Australia and Victoria, Jasper Farms, which produces avocados in Western Australia, and Pomona Valley, which produces apples and stone fruit in Victoria.

Like the Mitolo family, Ontario Teachers’ is committed to the long-term sustainable growth of the business as Mitolo Family Farms embarks upon the next phase of its strategy.

The business will continue to operate under the Mitolo Family Farms brand and under the leadership of Managing Director Frank Mitolo and the current executive leadership team including John Mitolo and Darren Mitolo.

Frank Mitolo, Managing Director of Mitolo Family Farms:
 

"The next steps in our growth trajectory will require additional capital to enter into new markets and pursue strategies that will help us profitably respond to emerging trends in agriculture and food manufacturing."

"The family realised that the additional capital would require partnering with the right investor who understands the cyclical and long-term nature of agriculture, and we believe Ontario Teachers’ is the ideal partner with which to take the business forward."

Christopher Metrakos, Senior Managing Director, Natural Resources at Ontario Teachers’:
 

"We are excited to partner with the Mitolo Family Farms to grow the company’s ambitions and further increase the quality and reliability that has made it a category leader in Australia over the past 50 years."

"Ontario Teachers’ and AustOn have a proven track record in investing in the farming sector both in Australia and worldwide, and we are focused on using this experience to deliver long-term, sustainable growth with Mitolo Family Farms."

Completion of the transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to occur by 30 June 2023. The transaction does not include Mitolo Wines.