Cobram Estate Olives (ASX:CBO) entered into a binding agreement to acquire California Olive Ranch for a total consideration of $173.5 million, according to a Wednesday Australian bourse filing.

The consideration includes $88.5 million in cash, $70 million in vendor notes issuance, and $15 million in earn-out payment.

California Olive Ranch's business includes olive cultivation, as well as the production and marketing of Californian extra virgin olive oil.

Cobram also said that it completed its fiscal 2026 Californian harvest, producing 3 million liters of olive oil, flat compared with a year earlier, due to lighter crops in some third-party groves. It also secured a further 800,000 liters of olive oil from other California millers.

The company also said it expects fiscal first half earnings before interest, taxes, depreciation, and amortization (EBITDA) to be AU$7 million to AU$10 million lower than the prior-year period, predominantly due to the higher cost of extra virgin olive oil sold during the six-month period.