TGG
07/06/2016 12:45
ASSET
PRICE SENSITIVE
REL: 1245 HRS T&G Global Limited
ASSET: TGG: Sale of T&G's crate business to Pact
07 June 2016
Sale of T&G's crate business to Pact
T&G Global Limited (T&G) is pleased to announce that it has agreed to sell
its crate hire business, trading as the Fruit Case Company (FCC), to PACT
Group Limited (Pact) for $21M (subject to completion adjustments). The
assets being sold have a value in T&G's accounts of approximately $8.5
million.
PACT will operate the FCC hire equipment business and acquire the FCC assets,
brands and trademarks from T&G. PACT will continue to operate FCC from its
current sites at T&G owned and leased premises throughout New Zealand.
On completion, PACT and T&G will enter into a collaborative working
relationship to cover areas such as research, technology, business
improvements and new opportunities to support the FCC business and enhance
its offering to customers. In addition, T&G agrees to continue to use FCC
for its internal crate needs and Pact has agreed to use T&G Transport for
movements of crates between depots.
Completion is subject to customary completion conditions. It is expected
that completion will occur on or about 1 July 2016.
PACT is the largest manufacturer of rigid plastics packaging in Australasia,
operating across seven countries and supplying a range of industries
including agriculture and dairy. Through the acquisition PACT will extend
its operations into crate pooling and hire in New Zealand.
Malcolm Bundey, PACT Managing Director & Chief Executive Officer said "FCC
has a proven track record, an established network and strong long term
relationships with growers and retailers that we look forward to continuing
to service and grow. T&G continues to invest in the NZ produce industry and
is an ideal partner for PACT."
"PACT manufactures a large and diverse product range. By acquiring the FCC
business, Pact strengthens its materials handling capability, through
expanding on its existing crate pooling and washing operations in Australia.
Pact can also combine its manufacturing expertise with the FCC business to
meet the crate, bin and pallet needs of the produce growers and retailers.
We look forward to working with T&G, the FCC staff and the wider produce
industry."
Alastair Hulbert, T&G Chief Executive Officer said, "For T&G, the supply
arrangements with PACT are part of our strategy to strengthen relationships
with market leading experts and focus T&G's resources on strengthening its
position as a leading producer, marketer and exporter of fresh produce.
PACT's access to innovative developments in crate design and packaging
solutions and its commitment to invest in crate pooling and washing in New
Zealand will be of significant benefit to T&G, our growers and our retail
customers."
About FCC
FCC is one of the leading providers of crate, bin and pallet hire equipment
to the produce industry in New Zealand. FCC hire equipment is used to
package, store, transport and display fresh produce. FCC issues crates, bins
and pallets to approximately 1,000 growers and receives returned crates from
retailers. FCC operates a national network of depots and crate washing
facilities, many co-located with T&G's produce markets and transport
business.
For further information: http://www.turnerslogistics.co.nz/hire-packaging
ENDS
Media querie
Tim Clarkson
T&G Head of Corporate Finance & Strategy
DDI: +64 9 573 8866, MOBILE: +64 274 899 009
EMAIL: [email protected]
WEBSITE: www.tandg.global
End CA:00283594 For:TGG Type:ASSET Time:2016-06-07 12:45:50
