NEW ZEALAND - They say that there is no more profitable investment than investing in yourself. This may seem obvious, but when companies set out to invest in themselves, there are many paths they can take. T&G Global Limited, for example, recently invested in itself by acquiring the domestic fresh produce division of Freshmax NZ, to boost its New Zealand business. The purchase deal, valued at $30 million, shows a strong commitment to its domestic business, and is in line with the company’s strategy for growth.
“We are proud to lead the consolidation of these two strong businesses which we believe will be a welcome catalyst of change to drive more efficient and effective ways of working with New Zealand growers and retailers,” said T&G CEO Gareth Edgecombe. “Freshmax NZ brings a strong team, operations, and facilities and a large distribution services business which are all complementary additions to T&G’s NZ Produce business.”
The acquisition is a significant opportunity to expand and strengthen the company’s presence in New Zealand, according to a press release. The agreement will allow T&G to deliver better service to growers and customers, provide a platform for an enhanced supply chain, and supply the highest quality fresh produce to customers year-round. Edgecombe went on to explain that the move will deliver an enhanced product offering with the aspiration of becoming the partner of choice for growers and customers.
“This acquisition demonstrates a strong commitment to our domestic business on which we were founded 122 years ago and signals the importance of having a vibrant home market for our Kiwi-based company with a global footprint,” he said.
The acquisition is expected to bring excellent trading relationships and strong ongoing supply relationships in key categories. The purchase deal includes three market sites (Auckland, Wellington, Christchurch) and distribution services throughout New Zealand.
“We’re excited to bring together the combined strengths of the Freshmax and T&G teams, suppliers, and customers into our business, and build a stronger combined presence in the New Zealand market,” said Managing Director of New Zealand Produce at T&G, Andrew Keaney. “We’re confident the acquisition will present opportunities for operational improvements for the wider fresh produce industry, deliver enhanced services to growers, and open up new commercial avenues for our collective trade partners.”
The deal has been signed and is subject to a number of conditions, including review by the Commerce Commission. Both Freshmax NZ and T&G Global’s NZ Produce business will continue business as usual until the necessary conditions are satisfied and the transaction closes.
Congratulations to T&G Global on this exciting acquisition!
