Hawaiian Host Group buys MacFarms for $26M

Dave Segal, The Honolulu Star-Advertiser
·3 min read

Apr. 22—The parent company of the Hawaiian Host and Mauna Loa macadamia nut brands has purchased the stock of MacFarms LLC, the state's largest individually operated mac nut farm, for $26 million from Australian-based Health and Plant Protein Group LTD.

The parent company of the Hawaiian Host and Mauna Loa macadamia nut brands has purchased the stock of MacFarms LLC, the state's largest individually operated mac nut farm, for $26 million from Australian-based Health and Plant Protein Group LTD.

As part of the transaction, Hawaiian Host Group also takes ownership of 240, 000 macadamia trees on Hawaii island and three local brands : consumer product businesses MacFarms and Royal Hawaiian Orchards, and the 4, 000-acre Kapua Orchards. Hawaiian Host Group already had 100, 000 Hawaii macadamia nuts under its control. In addition to the newly acquired Kapua Orchards in Kona, Hawaiian Host Group operates manufacturing plants in Honolulu and Keaau.

Hawaiian Host was the target of a bill introduced at the Legislature this year to force makers of macadamia nut products sold in the state to disclose the origin of the nuts if packaging suggests that the nuts are from Hawaii. The measure, House Bill 1348, stalled in the Senate in March.

Hawaiian Host President and CEO Ed Schultz was on a plane Friday and not available to comment on the percentage of local nuts that are contained in its products.

"We are very excited to welcome the MacFarms teams to Hawaiian Host Group, " Schultz said in a statement released Sunday. "The addition of 4, 000 acres of macadamia orchards in perpetuity allows us to plan for the long-term in Hawai 'i. MacFarms has a long-standing history of producing some of the best macadamia nuts in the world, and we look forward to continuing that tradition. This acquisition will allow us to expand our product offerings and continue to provide our customers ith the best-quality products, while retaining great jobs in the state of Hawai 'i."

Hawaiian Host, which now has 500 employees, said it will maintain local jobs by continuing the macadamia farming, processing and manufacturing operations at the MacFarms facilities near Kona. MacFarms and Kapua Orchards are both located south of Kona.

Hawaiian Host said after reaching a settlement with Citadel Pacific in February following two years of litigation, it was finally able to recapitalize the company to execute on some of its key long-term strategies, including using additional locally grown and locally processed macadamia nuts.

"We wish we could have shared this news two months ago as this deal, which reaffirms our leadership and commitment to Hawaiian macadamias, has been in the works for a long time, " Schultz said.

Hawaiian Host said it remains involved in a lawsuit with First Hawaiian Bank regarding the bank's role in the transaction with Citadel Pacific.

With MacFarms now part of Hawaiian Host Group, it will be the first time since 1985 that the company's leadership team will be based in Hawaii.

"With this investment into local people, agriculture and brands, Hawaiian Host Group is continuing my uncle's dream and carries on the spirit of my family's business, " said Tony Takitani, former chairman and nephew of Hawaiian Host founder Mamoru Takitani.