T&G Global Ltd. (formerly Turners and Growers), New Zealand, announced plans to acquire the domestic fresh produce division of Freshmax NZ, New Zealand, for $30 million.
The acquisition is projected to expand and strengthen T&G’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,” says Gareth Edgecombe, chief executive officer of T&G Global. “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 move will also deliver a stronger proposition to market and an enhanced product offering.
“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.
Furthermore, 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,” adds Andrew Keaney, managing director, New Zealand produce, T&G Global. “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 purchase deal includes three market sites (Auckland, Wellington, Christchurch) and distribution services throughout New Zealand.