TUR
10/12/2014 09:11
ASSET
PRICE SENSITIVE
REL: 0911 HRS Turners & Growers Limited
ASSET: TUR: T&G announces acquisition of two tomato businesses
Turners & Growers Limited ("T&G") announced today the acquisition of Bay of
Plenty tomato grower Great Lake Tomatoes Limited ("Great Lake") and Waikato
tomato grower Rianto Limited ("Rianto").
"Earlier this year we launched our strategic pillars with Covered Crops being
singled out as a strong category for us. These acquisitions enable us to look
at further sales opportunities in New Zealand and also our international
markets," says T&G Chief Executive Alastair Hulbert.
Rianto, through its subsidiary Rembrandt Van Rijen Limited, is a family owned
tomato grower in Ohaupo, Waikato. Rianto owns and operates a 3.13Ha
glasshouse facility producing approximately 1,600 tonnes of tomatoes
annually, with a particular focus on the winter season. Its assets which are
to be acquired also include a residential property and a total of 18.8Ha of
land (including the glasshouse operations). The total purchase price is
estimated to be $8.5million.
Great Lake is a tomato grower based in Reporoa, Bay of Plenty and owns and
operates a 4.9Ha glasshouse facility producing approximately 3,000 tonnes of
tomatoes annually, with a particular focus on the summer season. Its assets
which are to be acquired also include 74.4Ha of land (including the
glasshouse operations). The total purchase price is estimated to be
$17.3million.
Anthony Stone, T&G Covered Crops Manager notes that not only does it fit with
T&G's strategic direction but it is a great opportunity to provide T&G's
customers with a greater surety of supply, through this geographical spread
of production facilities and to better service T&G's customers' needs.
"Our T&G Covered Crops business supplies mainly to Australasia but with Great
Lake and Rianto on board we can look to improve capability to develop both
our domestic and export markets. Great Lake and Rianto have a wealth of
knowledge and expertise that we will be able to utilise alongside our own
operations."
Ton Zwetsloot, the managing director and majority shareholder of Great Lake
and Frank van Rijen, the managing director and owner of Rianto, have both
committed to continuing involvement with the respective businesses and to
assist the T&G Covered Crops business.
"This is a great opportunity for our people to work with a business who will
be well placed to fulfil their growth potential. We will be working together
to ensure continued quality of product and service to our customers," says Mr
Zwetsloot.
Mr van Rijen has been working with T&G for many years utilising T&G's packing
and marketing channels and is happy to continue working with T&G.
"We have been a largely exclusive supplier to T&G for as long as I can
remember operating with full transparency, I think they understand our
business as well as we do. Over that time T&G has been very successful in
building relationships with key customers and delivering real value back to
our business, so it seems natural that T&G be the next rightful owners and
continue its momentum.
I am truly looking forward to working with T&G to help refine its business
plans and work toward further growth of our industry and continuing to
achieve value back to producers - these are exciting times," says Mr van
Rijen.
Both acquisitions are subject to consent being obtained under the Overseas
Investment Act. T&G expects completion of each acquisition to occur on or
before 1 July 2015.
ENDS
Media queries:
Kylie Horomia, Corporate Communications Manager
(E) [email protected]
(+64) 9 573 4750 or (+64) 21 563 531
WEBSITE: www.turnersandgrowers.com
End CA:00258725 For:TUR Type:ASSET Time:2014-12-10 09:11:12
