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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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