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

 


Turners & Growers to buy Apollo Apples for up to $44.1 mln

Turners & Growers to buy Apollo Apples for up to $44.1 mln

April 16 (BusinessDesk) - Turners & Growers, the fruit marketer controlled by Germany’s BayWa, has agreed to buy Hawke’s Bay-based Apollo Apples for as much as $44.1 million as it looks to meet growing global demand.

The Auckland-based company will pay $36.05 million up front for the apple grower, packer and exporter, and cool store operator, and will pay up to $8 million in the following four years if performance targets are met, T&G said in a statement. Apollo founders Bruce and Ross Beaton will stay with the business for at least the next four years.

T&G also agreed to pay $1 million for a half-stake in Apollo Foods, a small processed apple foods business, with the Beatons keeping the other half.

The deal is part of T&G’s growth strategy to help its ENZA unit meet global demand for southern hemisphere supply, it said.

“The acquisition demonstrates our commitment to further invest in the NZ apple industry, improve grower returns and increase NZ apple exports,” T&G chief executive Alastair Hulbert said. “We need to serve the demand of a greater number of export customers and markets.”

T&G returned to profit in 2013 after two years of losses when it wrote down the value of its orchards, with higher volumes, price increases, greater access to new markets and customers in Asia helping to boost its export earnings.

The deal is subject to Overseas Investment Office approval and certain material contracts, which T&G said will likely be satisfied within four months.

T&G’s shares, of which BayWa owns about 73 percent, were unchanged at $1.90 yesterday, and have gained 8.6 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news