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


Scales Corporation Acquires 60% of US Petfood Company

Scales Corporation Acquires 60% of US Petfood Ingredients Manufacturer Shelby JV LLC For US$23.2M

Diversified agribusiness Scales Corporation Limited (NZX:SCL) today announced an agreement to extend its existing petfood ingredients business Meateor through the acquisition of 60% of Shelby JV LLC (Shelby), a large independent US buyer, processor, and seller of ingredients for the petfood industry. The acquisition, for consideration of US$23.2 million, is from Brett Frankel, the founder and President of Shelby who will retain a 40% shareholding post transaction. The transaction is unconditional but for the satisfaction of Completion obligations. Completion is scheduled to take place prior to the end of the 2018 calendar year.

Managing Director Andy Borland says “Shelby operates in a sector that we know and understand well. We are pleased and excited to be extending our existing petfood activities through this partnership with Shelby, its founder Brett Frankel, and its management team, all of which are very highly regarded in the market. Whilst undertaking our commercial due diligence we were encouraged by the strength of the relationships that Shelby has with both its customers and suppliers, and the high regard in which they hold Shelby.”

“In addition, the Shelby partnership has a strong strategic alignment with the operations of our existing petfood ingredients business, Meateor. Shelby extends the range of proteins that Meateor presently offers whilst also offering an in-market point of contact for customers that are shared between the two businesses. Shelby adds approximately 80,000 MT of product sales to Meateor’s sale volume of ~27,000 MT.”

Brett Frankel, President of Shelby says “Shelby believes Scales is an ideal partner to help Shelby continue to move forward as a leading independent petfood ingredients processor. We are excited to partner with the Meateor and Scales team, and look forward to leveraging the opportunities available to both businesses to grow the breadth of solutions that we offer to our customers.”

Tim Goodacre, Chairman of Scales Corporation said “the acquisition of Shelby demonstrates our commitment to our strategy refresh. Scales has experienced strong growth in its Food Ingredients division and believes that this division continues to offer both attractive market opportunities and strong financial returns that meet or exceed our long-run ROCE target of 15%.”

“We believe the Food Ingredients division can replace the earnings from the pending sale of our Coldstore business in the medium term. To this end, we are setting an EBITDA earnings target of $25.0 million from this division in the next five years and have ear-marked further funding of up to $50.0 million over this period to meet these targets. Meateor and the Food Ingredients division is, and will continue to, consider various acquisition and strategic growth opportunities to extend the breadth and depth of its supply base and product range in particular.”

Scales was advised by Maher & Associates (lead buy-side advisor), PwC (financial and tax), and Sills, Cummis & Gross (legal).

© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>


Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing


House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>