Buderim Ginger, the world's largest producer of confectionary ginger, has signed a letter of intent to buy the assets of Big Island-based MacFarms of Hawaii LLC and lease a 3,903-acre macadamia nut orchard owned by an affiliate, Kapua Orchard Estates.

Buderim Ginger, a Yandina, Queensland-based company that is Australia's third-largest processor of macadamia nuts, said it wants to become the world's leading broad-based macadamia nut processor and marketer with the acquisition. The transaction is subject to the completion of due diligence and the negotiation of a definitive sale and purchase agreement.

MacFarms owns the state's second-largest macadamia nut processing facility and markets its nuts under the MacFarms and Kona Select names.

The proposed sale comes seven months after another acquisition of the company fell through. Last year the world's largest grower of macadamia nuts, Hilo-based ML Macadamia Orchards L.P., had signed an agreement to buy MacFarms in a cash and equity deal.

But ML Macadamia said both parties had agreed to cancel the transaction in December.

Buderim said it hopes to complete its purchase of Captain Cook-based MacFarms' assets in early August.

"We are excited about the opportunities this acquisition will open up for us," said John Ruscoe, Buderim's chairman, in a press statement.

"After the acquisition, the company will become arguably the largest processor and marketer of macadamia nuts in the world, complementing Buderim Ginger's long-held position as the world's leading processor and marketer of confectionary ginger."

Buderim markets its nuts under the Agrimac Macadamias name in Asia, Europe and North America. The company also has bakery and food businesses as well as running a tourist attraction, The Ginger Factory, on Australia's Sunshine Coast.

The announcement is the second this week by an Australian company proposing to buy a local firm. On Sunday, Sydney-based Sonic Healthcare Ltd. said it has an agreement to buy Clinical Laboratories of Hawaii LLP and its associated Pan Pacific Pathologies for $121 million.

The Australian dollar has strengthened 12.8 percent against the U.S. dollar in the past year.