TOMRA Systems has signed an agreement with the owners of Compac Holding for a 100% share in the company.
The transaction is expected to be closed during Q1, 2017, subject to approval by the New Zealand Overseas Investment Office.
TOMRA’s President and CEO Stefan Ranstrand says: "The food market is large and continuously growing with requirements around food safety and quality becoming increasingly more stringent. Food producers are also consolidating, becoming larger, more sophisticated and more global. As a leading technology supplier into this industry we see clear advantages in mirroring this trend.
"With the acquisition of Compac, we reinforce TOMRA’s leading position within the food segment and we will be the first player to present an offering to our customers for sorting fresh and processed foods with both lane and bulk sorters."
Compac is a New Zealand-based provider of post-harvest solutions and services to the global fresh produce industry. The company designs, manufactures, sells, and services packhouse automation systems, which sort fresh produce based on weight, size, shape, colour, surface blemishes, and internal quality.
Established in 1984, Compac employs approximately 700 people across locations in New Zealand, Australia, US, China, Latin America, South Africa, Spain, and Italy. It has a leading position within the sorting of apples, kiwis, cherries, avocados, and citrus. About 6000 Compac sorting lanes have been sold worldwide in over 40 markets.
Compac’s CEO Mike Riley said: "Market forces have driven double digit growth at Compac over recent years, and we have rapidly become a global business from humble New Zealand roots. Joining forces with TOMRA will enable us to continue to meet the increasing demands for our products and services in a more scalable and operationally efficient manner".
TOMRA Sorting Food designs and manufactures sensor-based sorting machines for the food industry. Over 5,900 systems are installed at food growers, packers and processors worldwide.
The company provides high-performance optical sorters, graders, peeling and process analytics systems for nuts and seeds, dried fruits, potato products, fruits, vegetables, meat and seafood.
Executive vice-president and head of TOMRA Sorting Volker Rehrmann said: "Compac serves complimentary food sorting markets, which is a very welcome addition to the TOMRA Sorting food business.
"We see our customers’ needs evolving and with our complementary solutions and an increased ability to leverage our combined food sorting technologies, we are ready to meet future customer needs."
Stefan Ranstrand adds: "We will strengthen each other’s presence in key markets, as well as consolidate and leverage our global operations. We will continue to invest in Compac’s Auckland-based research and development (R&D) activities as our centre of excellence for lane sorting for TOMRA worldwide. Compac and TOMRA share common values of customer satisfaction and lasting partnerships. Under the new umbrella, customers will benefit from the shared focus of both companies on food safety, food quality, improved yield, and productivity."
Senior vice-president and head of TOMRA Sorting Food Ashley Hunter said: "The geographical coverage of the combined companies is extensive, and customers will find a one stop shop for sorting, peeling and analytical solutions for a wide variety of food products. The integration of lane sorting and bulk sorting within the fresh and processed food industries is a natural development for many applications and the leadership positions of both TOMRA and Compac will now provide a unique capability in this regard."
Compac’s leadership team will remain active in the new structure and Compac’s customers can rest assured they will deal with the same people in sales and service. TOMRA will continue to offer its existing product portfolio and remain the trusted partner for future growth and optimal customer satisfaction.
Compac’s Founder and majority shareholder Hamish Kennedy commented: "I am very proud of the team at Compac and the reputation we have built for innovation and technology. TOMRA is the world leader in sorting technology with proven performance and a great culture; I am very excited at the opportunity that this will provide Compac to continue to grow and become the undisputed leader in our sector."