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

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news