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- Release Date: 08/04/14 19:01
- Summary: ASSET: SEK: Seeka announces Glassfields purchase
- Price Sensitive: No
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SEK
08/04/2014 17:01
ASSET
REL: 1701 HRS Seeka Kiwifruit Industries Limited
ASSET: SEK: Seeka announces Glassfields purchase
Seeka Kiwifruit Industries Limited advises that it has agreed to purchase
Glassfields (NZ) Limited.
Glassfields, with operations based in Auckland and opening in Christchurch,
provides ripening and delivery services to key retail customers as well as
wholesale market services to independent operators. The Company holds
exclusive New Zealand rights to import and distribute Sumifru bananas,
pineapples and papayas from the Philippines and provides banana ripening
services for an extensive part of its business operations.
Prior to purchase the Company was privately owned. The purchase is expected
to be completed on 17 April 2014.
Seeka advises that the purchase will be made using a combination of existing
cash resources and debt lines. Seeka would expect an EBITDA impact of
between $750k and $1.25m in the 2015 financial year from the purchase without
including growth from a number of initiatives that Seeka is considering. The
price represents an EBITDA multiple of approximately 5 times on normalised
earnings. The EBITDA impact in the current financial year is expected to be
less as the Company is repositioned into the Seeka group, and taking into
account costs of the acquisition. All employees of Glassfields are expected
to be retained in the acquisition.
Glassfields will be led by a new General Manager to the company, Mr Ray Hook.
Ray brings a wealth of experience to Glassfields having worked as the Joint
Chief Executive of One Harvest and Chief Executive of Oolloo Farms and The
Harvest Company in Australia, and prior to that Chief Financial Officer at
Summit Quinphos and the Stevenson Group.
Seeka's Chief Executive, Michael Franks, stated:
"Glassfields is a small but important step in Seeka achieving its strategic
goal of becoming New Zealand's Premier Produce Company. Kiwifruit remains the
foundation of Seeka's business, but importantly new produce and income
streams are being added as part of our growth strategy. Avocados and
Kiwiberry have successfully been added already, along with a Malaysia hub
coolstore investment. The Glassfields acquisition sees Seeka entering the
retail services sector in New Zealand and adds the banana category to the
Company's product range. Seeka will continue to build on its supply chain
business that delivers excellent service and produce to its customers."
Seeka has also now completed the sale of its shares in OPAC, for net proceeds
of $3.1 million.
Seeka shareholders will be updated on the purchase at its Annual Meeting of
Shareholders on 29 April in Mount Maunganui.
Release ends:
For further information please contact:
Michael Franks - Seeka Chief Executive
021356516
Stuart McKinstry - Seeka Chief Financial Officer
0212215583
End CA:00249263 For:SEK Type:ASSET Time:2014-04-08 17:01:42
