T&G Global Limited (formerly Turners and Growers), one of the largest fresh produce companies in New Zealand, has entered into an agreement to acquire the domestic fresh produce division of Freshmax NZ, to boost its New Zealand business and benefit growers, customers and the wider industry.
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.
T&G Global CEO Gareth Edgecombe says the acquisition is a significant opportunity to expand and strengthen the company’s presence in New Zealand, 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.
“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. 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.”
He says the move will deliver a stronger proposition to market, 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,” says Edgecombe.
T&G Global, Managing Director New Zealand Produce, Andrew Keaney says the acquisition brings excellent trading relationships and strong ongoing supply relationships in key categories.
“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.
“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,” he says.
The purchase deal includes three market sites (Auckland, Wellington, Christchurch) and distribution services throughout New Zealand.
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.