NEW ZEALAND: Turners & Growers acquires Apollo Apples
T&G furthers expansion plans with M&A
New Zealand produce firm Turners & Growers has acquired vertically integrated apple supplier Apollo Apples in a deal that could value the group at as much as NZ$31.15m (US$26.79m).
T&G has agreed to pay NZ$36.05m cash on completion, plus an additional amount equivalent to the group's working capital, which stood at NZ$7.1m at the end of December. Up to NZ$8m more could be paid over the next four years, depending on whether Apollo hits certain performance benchmarks, T&G said.
Apollo saw a "strong" 2013 apple season and in the year to 31 December the group reported sales of NZ$50m and EBIT of NZ$6.3m. The transaction includes Apollo's fixed assets, which have a value of NZ$57m.
T&G said the deal was part of its growth strategy to meet the "global demand for southern hemisphere supply".
Alastair Hulbert, T&G CEO, commented: "We need to serve the demand of a greater number of export customers and markets."
In a related agreement, T&G will take a 50% stake in a "small processed apple foods" business, Apollo Foods Ltd. The company will pay NZ$1m for the shareholding in the firm, which was established by Apollo founders Bruce and Ross Beaton.
- BRICs and beyond: Fonterra, Beingmate partnership
- On the money: Mengniu hones in on "star" brands
- Comment: Competition to rise on whey investments
- just-food interview: Agropur CEO Robert Coallier
- Consuming issues: The hunger-obesity paradox
- Valio lactose-free trucks stopped at Russia border
- Heinz halves sugar in ketchup launch
- H1 profits down at dairy group FrieslandCampina
- Bisco Misr says Kellogg eyeing majority stake
- Valio targets China with EUR70m whey inve
- China - ISA Country Report
- New Strategies for offering Convenience in Food - targeting new occasions, best practice and new solutions
- Other Dairy in Russia
- David Chapman's Ice Cream Ltd in Packaged Food (Canada)
- Global Food and Grocery Retailing, 2013-2018: Market Dynamics, Retail Trends and Competitive Landscape