Sale of company changes name to FirstFruit Farms

The

quiet sale of one of the state’s largest apple companies means Broetje Orchards

has a new name: FirstFruit Farms.

The

sale closed at the end of 2018 and the business now operates under three

entities: FirstFruits Farms LLC, FirstFruits Marketing LLC and FirstFruits

Community LLC.

Financial

terms of the sale were not disclosed.

A

real estate excise tax affidavit filed with the state Department of Revenue

lists the gross selling price of the real estate portion of the sale at $288

million.

Formerly

one of Washington’s largest family-owned and operated apple companies, the

Prescott-based operation, about 30 miles northeast of the Tri-Cities in Walla

Walla County, is now owned by the Ontario Teachers’ Pension Plan, based in

Toronto, Ontario.

Broetje

Orchards was originally founded by Ralph and Cheryl Broetje more than 35 years

ago. The philanthropic couple still are involved in the nonprofit Center for

Sharing. Cheryl said it was too soon after the sale to comment publicly on the

topic.

Ontario

Teachers’ also declined to comment on details about the offer and whether it

was solicited by Broetje Orchards.

A

release from FirstFruits said the new owners are “committed to making the

transaction as seamless as possible to avoid any disruption for employees and

customers, and will continue the operations of several of the employee-support

programs established by Broetje Orchards.” Over the years, Broetje added

seasonal housing, a day care and permanent housing for employees.

“Our

acquisition of Broetje Orchards is a strong strategic fit for our natural

resources portfolio, providing a large-scale asset with direct exposure to a

staple component of the food basket. Broetje has a strong operational track

record and fits our strategy of investing in permanent crops that deliver

stable cash flows, strong risk-adjusted returns and inflation protection for

the members of our pension plan,” said Dale Burgess, managing director and head

of Ontario Teachers’ infrastructure and natural resources department.

Ontario

Teachers’ manages the pensions for about 323,000 active and retired elementary

and high school teachers in Ontario, Canada. It is the nation’s largest

single-profession plan with net assets totaling $193.9 billion in mid-2018. The

organization already has agriculture investments in the United States and

elsewhere in the world, covering crops like almonds, avocados and dates.

The

transaction did not include any staff reductions or change in leadership staff

as Broetje Orchards transitioned to FirstFruits Farms LLC.

“We

are very pleased with the current employee base and management team led by Jim

Hazen, the former Broetje Orchards business manager and newly-appointed

president and CEO of the company,” Burgess said. “We look forward to being

a member of this community and working with the company and its employees to build on its many successes in the

years ahead.”

Hazen declined to comment beyond the news release

announcing the company’s sale. “We are looking forward to maintaining the

legacy established by the Broetjes to focus on growing quality apples and

investing in our people,” he said in a written statement.

FirstFruits Farms said it grows, packs and ships nearly

seven million boxes of apples a year, totaling about 500 million apples. These

include its proprietary Opal variety, marketed as a “lunchbox hero” for being

naturally non-browning.

The company remains headquartered at 1111 Fishhook Park

Road in Prescott, where it holds 1.1 million square feet of warehouse and

packing facilities.

FirstFruits Farms said it has one of the largest

contiguous orchards in the United States, with more than 4,300 acres covering

almost 10 miles along the Snake River. It also has orchards in Benton City and

Wallula where, together, more than 15 varieties of apples and cherries are

grown.

FirstFruits Farms employs 2,800 people

at harvest, making it the largest employer in Walla Walla County.