Cobram Estate Olives acquires California Olive Ranch to enhance US dominance
The landmark deal positions Cobram Estate as the largest olive oil producer in the US, significantly expanding its footprint in California and strengthening its global market presence.
AUSTRALIA/USA – Cobram Estate Olives (CBO), the country’s leading extra virgin olive oil producer, has announced a binding agreement to acquire California Olive Ranch (COR), the top-selling Californian olive oil brand in the United States, for US$173.5M.
This transformative deal, funded partly by a US$115.6 million share placement in September 2025, catapults CBO’s California footprint from 1,422 hectares to approximately 3,292 hectares of planted groves, blending owned land, long-term leases, and third-party contracts.
The payment structure includes US$88.5 million in cash, USUS$70 million in vendor notes, and a US$15 million earn-out, reflecting COR’s projected FY2026 performance of US$150 million in net revenue and US$16 million EBITDA pre-synergies.
COR operates a vertically integrated model encompassing 1,870 hectares of groves; 261 hectares owned and 1,609 leased, plus olives from over 2,500 hectares of supplier farms.
California Olive Ranch, widely recognized for its pioneering role in modernizing American olive oil production, brings extensive groves, established distribution networks, and a strong brand portfolio to the deal.
By integrating COR’s assets, Cobram Estate will more than double its California olive groves, enhancing production capacity and securing greater access to the North American market.
Its portfolio features premium brands like California Olive Ranch, alongside a state-of-the-art mill, bottling plant, and storage in Artois, California, ensuring end-to-end control from orchard to shelf.
Synergies are forecast at US$12 million in FY2027, escalating to more than US$20 million annually by FY2030, driven by higher yields, reduced grove costs, corporate efficiencies, and optimized operations.
CBO Chair Rob McGavin hailed the move as delivering “compelling strategic and financial benefits,” instantly expanding premium brand access while leveraging COR’s retail stronghold across the US and Canada.
The acquisition follows CBO’s completion of its FY2026 California harvest, securing 3.8 million liters of olive oil supply, a 27% year-over-year increase.
This cross-hemisphere merger positions the combined entity as a North American powerhouse, merging Australian innovation with California’s ideal terroir.
Industry analysts project accelerated growth amid surging US demand for domestic olive oils, countering imports amid supply chain tensions and climate variability.
Pending regulatory approvals, closure expected mid-2026 will enhance CBO’s resilience, blending hemispheres for year-round supply and innovation in health-focused cooking oils.
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