Markel Ventures has entered into an agreement to acquire a majority interest in Costa Farms. This transaction is expected to close in the third quarter of 2017.
Costa Farms is a third-generation, family-owned business that is the largest producer of house plants and outdoor garden plants (“ornamental plants”) in the world with over 4,000 acres globally and almost 5,000 employees. The company’s plants are sold in garden centers, home-improvement centers, club stores, and grocery stores. Along with its indoor and bedding plant divisions, Costa Farms operates merchandising services and young-plant production divisions, with operations domestically in South and Central Florida, North Carolina and South Carolina, and abroad in the Dominican Republic and Asia.
The company, led by CEO Joe Smith, was founded in 1961 by Jose Costa and is headquartered in Miami (www.costafarms.com).
“The Costa family and their team have spent generations building a company that beautifies people’s lives and homes with millions of plants and garden flowers each year,” said Tom Gayner, Co-CEO of Markel Corporation. “We love what they do and the way they go about doing it, and when they approached us looking for a partner to support the continued growth of this incredible company for future generations, we couldn’t have been more excited.”
Markel Ventures is a subsidiary of Markel Corporation (NYSE: MKL), a financial holding company with insurance, industrial, and service operations serving a variety of niche markets. Markel Ventures was established to acquire majority control of companies with revenues greater than $25 million and EBITDA greater than $10 million. Sectors of interest include diversified manufacturing; service and value-added distribution; consumer and industrial products; capital equipment; and healthcare. The firm is based near Richmond in Glen Allen, VA (www.markelcorp.com).
© 2017 Private Equity Professional | August 23, 2017