T&G Global sells crate hire business to Pact Group for $21m
The sale of T&G's Fruit Case Co is expected to be completed around July 1.
T&G Global [NZX: TGG], the New Zealand fruit marketer controlled by Germany's BayWa, has sold its crate hire unit to packaging manufacturer Pact Group for $21 million as part of a deal where the two companies look to pool their resources and build up the business.
The sale of T&G's Fruit Case Co is expected to be completed around July 1, with Pact acquiring the crate hire firm's assets, brands and trademarks while continuing to operate from T&G-owned and leased sites around New Zealand. T&G will keep using Fruit Case Co's internal crate business and Pact will use T&G Transport to move crates between depots.
As part of the deal, T&G and Pact said they will support Fruit Case Co's business through shared research, technology, business improvements.
"For T&G, the supply arrangements with Pact are part of our strategy to strengthen relationships with market leading experts and focus T&G's resources on strengthening its position as a leading producer, marketer and exporter of fresh produce," chief executive Alastair Hulbert said in a statement. "Pact's access to innovative developments in crate design and packaging solutions and its commitment to invest in crate pooling and washing in New Zealand will be of significant benefit to T&G, our growers and our retail customers."
The divestment comes after T&G embarked on a series of acquisitions over recent years, such as Hawke's Bay Apollo Apples, tomato growers Great Lake Tomatoes in the Bay of Plenty, and Rianto in Waikato, which boosted annual revenue by $63.4 million in 2015.
T&G shares, of which BayWa owns about 73 percent, rose 2 percent to $2.50 and have gained 17 percent this year.
(BusinessDesk)
Paul McBeth
Tue, 07 Jun 2016
Tue, 07 Jun 2016
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T&G Global sells crate hire business to Pact Group for $21m
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