T&G Global Limited 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.”
“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.
Freshmax New Zealand CEO Andrew Common says the mutually beneficial deal sets up both parties for sustained levels of business growth.
“Both T&G and Freshmax have a strong reputation for delivering value to their New Zealand suppliers and customers. We also share a similar culture with largely complementary business models. The coming together of these two businesses provides greater sustainability and brings the potential for growth opportunities.”
Aligning the businesses will create ability for suppliers on both sides to access a wider market base and provide an expanded portfolio of high-quality product to customers, Common says.
Freshmax Group CEO Murray McCallum says the sale of the New Zealand domestic business will free up the company’s other New Zealand businesses to focus on continued growth in international operations, including the potential for further investment across its core categories and IP.
Both McCallum and Common will support the Freshmax New Zealand domestic team through the transition, before continuing to drive the Freshmax Group’s Australian and international businesses.
After the deal satisfies final requirements, Freshmax will focus on strengthening its investments in New Zealand that support export growth.
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.
