Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tru-Test buys milk storage unit for $73 mln from NDA

Tru-Test buys milk storage unit for $73 mln from NDA

By Paul McBeth

Feb. 4 (BusinessDesk) - Tru-Test Group, the agri-tech group that ranked 16th on the TIN100 survey of the country's top research and technology firms, has bought milk storage and refrigeration firm Dairy Technology Services from local manufacturer NDA Group for $73 million.

The Auckland-based company bought the company after raising $5.4 million in a two-for-nine renounceable rights issue at 96 cents apiece, which it said would be used to help fund the DTS acquisition. Though Tru-Test today said it wouldn't disclose the value of the acquisition, the December offer document and later amendment put the purchase price at $73 million, subject to adjustments based on working capital.

The acquisition included $68 million in non-current assets, of which $67 million were intangible, and would see Tru-Test take on up to $58 million in bank debt to help fund the deal. Tru-Test expects DTS to add 40 percent to its earnings before interest, tax, depreciation and amortisation, which were $5.9 million in the 12 months ended March 31 last year on sales of $103.4 million.

The purchase follows on from Tru-Test's $1 million acquisition of Radian Technologies in December as it looks to provide more integrated support for dairy farmers, chief executive Greg Muir said in a statement. DTS employs 80 staff at its Taranaki manufacturing facility and administration and sales office in Hamilton.

"The dairy industry will increasingly need to integrate new technologies and services if it is to achieve the sustainable growth it seeks," Muir said. Farmers "want stronger levels of support on farm to maximise the value of technology investments and ensure the efficient ongoing operation of farm systems."

Tru-Test manufactures livestock weigh scale indicators, milk metering equipment, electric and traditional fencing tools and dairy automation systems.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news