Valuation dynamics

There are no floricultural growers publicly listed, which is in line with the previous observation that the grower landscape has very few sizable companies. There are, however, several other types of growers listed; for example, companies that are active on the edible side of the market. Though not spot-on, statistics on their valuations do provide valuation guidance.

The valuation multiples of the selected companies are very diverse and are, amongst other factors, influenced by the type of crop(s) the respective

company is active in, the growth cycle of their plants, the country the plantations are located in, the ownership situation of the premises, the company’s speed of growth and, especially, the capital intensity of the business.

Frank de Hek, Horticulture Specialist, Oaklins

“Valuations of growers are very dependent on the situation. Smaller growers with succession issues might be sold for asset value or 2-3x EBITDA. On the other hand, a sizable, multicrop, integrated and institutionalized company with a strong retail approach that is consequently well positioned to take advantage of the changing market dynamics can see valuations north of 7x EBITDA. One should bear in mind that with the lack of an IP and (especially greenhouse growers) strong asset base requirements, EBITDA valuations of growers are, typically,

significantly lower than for breeders."

The next big thing: growers scaling up