Seeka Kiwifruit Industries has agreed to acquire Australian company Bunbartha Fruit Packers in a A$22m($16.1m) deal.
The acquisition covers Bunbartha Fruit Packers' kiwifruit and orcharding business and its associated entities including prime water shares linked to the properties.
Bunbartha has 505 hectares of land in Shepparton, Victoria, including approximately 240 hectares of orchard land that comprises 95 hectares of kiwifruit, with pears, plums, apricots and cherries on the remainder.
With this investment, Seeka is expected to become the largest kiwifruit grower in Australia, building on its position as New Zealand's largest kiwifruit grower.
Bunbartha owners Jamie Craig and John Karl will be contracted to remain with the business.
Seeka CEO Michael Franks said: "The purchase will be made without a crop, with the first harvest of cherries to start in November 2015.
"There is potential in the transaction to expand the orcharding area over time and Seeka expects profits from the purchase to occur in the 2016 financial year."
Seeka has established a wholly-owned subsidiary in Australia to acquire the business and handle debt financing.
