Green Gold: Profitable 35 ha Greenhouse Business In Portugal

Industry Overview

1. The total greenhouse production area in Portugal is about 3,000 ha with a tendency for expansion.
2. Tomato is the most important greenhouse crop.
3. The sector has modernized in recent decades but remains heterogeneous in terms of technology, yields, and management.
4. Most of the greenhouse area (about 75%) corresponds to single and multiple plastic tunnels with semi-automatic or automatic climate control.
5. The use of glasshouses with fully controlled environment remains minor, due to the high costs of equipment, energy consumption, and limited expertise and technical support for local conditions.

Location

West Coast of Portugal

Business Description

Greenhouse Operation: 35 ha of greenhouses in operation and 20 ha ready for construction.

1. Facilities: Includes water wells, equipment, and a logistics center with a 14,000 m2 warehouse.
2. Crops: Various crops like tomatoes, peppers, cucumbers, zucchinis, beans, grapes, etc.
3. Staff: 35 permanent employees and up to 200 seasonal workers.
   
4. Equipment: Necessary machinery for operation, including tractors, water pumps, semi-trailers, etc.

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Financial Summary

Revenue: Currently €26M/year with potential to reach €50-60M/year
Additional Offer: A separate 8.8 MW/hour freezing unit

Investment Rationale

1. Established Operation: The business is already functioning with 35 ha of greenhouses in operation. This reduces the risk associated with starting a new business from scratch.
2. Expansion Potential: There are 20 ha ready for construction, offering the potential for business expansion and increased revenue.
3. Diverse Crops: The business grows a variety of crops, which can help mitigate risks associated with crop failure or market fluctuations for a particular product.
4. Existing Clientele: The business has established clients like Lidl and Pingo Doce, providing a stable source of revenue.
5. Revenue Potential: The business currently generates €26M/year with the potential to reach €50-60M/year, indicating a promising return on investment.
6. Additional Assets: The offer includes necessary machinery for operation and a separate freezing unit, adding value to the investment.
7. Workforce: The business has a workforce in place, both permanent and seasonal, reducing the hassle of recruitment and training.
8. Market Trends: With the increasing global focus on sustainability and locally sourced food, the demand for greenhouse-grown produce is likely to increase.

Customer Overview

Major clients include Lidl and Pingo Doce.

Transaction Information

Full sale. Strategic Partial sale