German conglomerate BayWa, which has been granted official approval to proceed with its planned takeover of New Zealand fresh produce exporter Turners & Growers (T&G), is in the process of putting together a comprehensive strategy that it hopes can maximise commercial opportunities for existing fruit growers in Germany as well as its new shareholder and grower partners in New Zealand.
Speaking exclusively to Eurofruit in London on the day that BayWa's proposal to acquire a majority stake in T&G was rubber-stamped by New Zealand's Overseas Investment Office, the group's chief executive Klaus Josef Lutz said the NZ$157m (€97.2m) deal for around 72.5 per cent of the company was a significant step forward for the German fruit trade as a whole.
'For the fruit business in Germany, I think it is a very important move forward because my impression is that the demand of the fruit retailer in Germany is to have suppliers which are able to supply them with apple and with other fruits 365 days of the year,' Lutz commented. 'And now we are in a position to do that together with Turners & Growers.'
BayWa directors set to join the T&G board following this week's expected completion of the takeover transaction are due to be in Auckland at the start of April, where they plan to meet with T&G's remaining minority shareholders – including Scales Corporation, owner of T&G subsidiary Enza's largest apple supplier Mr Apple – to discuss the future direction of the group.
BayWa has now declared its offer for T&G unconditional, maintaining the previously set deadline of 7 March for shareholders to sell their stake.
Following Scales' recent purchase of additional shares, bringing its holding up to 10.3 per cent, T&G is set to remain listed on the New Zealand Exchange.
T&G chairman Rob Campbell, who is due to hand over the chairmanship to Klaus Josef Lutz shortly, welcomed BayWa's announcement that its takeover offer had been made unconditional.
'The announcement resolves a period of uncertainty for shareholders, staff and suppliers,' he said. 'The board and management are looking forward to completion of the acquisition and working with the new controlling shareholder.'
He added: 'We all see a growing and strong future for the business working with BayWa globally to grow the presence of New Zealand products around the world and an efficient fruit and produce market in New Zealand.'
New direction
Eurofruit understands that T&G managing director Jeff Wesley, who announced his retirement last week, will remain at the helm until a replacement is found.
BayWa confirmed it had begun to search for a replacement, instructing its recruitment agent to draw up a shortlist of potential candidates.
The new managing director of T&G is not expected to be transferred from BayWa itself, although it remains to be seen whether the appointment will be from within the T&G group or from outside.
Sources close to the company have suggested that the new MD will need to have extensive experience of the Australasian fresh produce industry.
Wesley, who led the company for seven years, said BayWa's scale and market access, particularly across Europe, would be a boost for New Zealand exports.
'Turners & Growers is very fortunate to now have a controlling shareholder which recognises the value of New Zealand's premium products and the opportunities to grow markets for them internationally,' he commented.
'Our reputation for product and marketing excellence is a great match for the global scale and reach of BayWa and this takeover represents the next chapter in Turners & Growers' proud history.'
Industry support
Elsewhere, support for the takeover came from Ian Palmer, chairman of apple and pear growers' association Pipfruit New Zealand.
'It is pleasing to see the transaction finally concluded,' he said. 'I see the purchase as a positive sign for the NZ apple industry, with Turners and Growers being a cornerstone of the apple sector.'
He continued: 'It is pleasing to see a company such as BayWa invest into the fruit and vegetable sector in New Zealand. They have a strong record of performance and a history of long term investment in their businesses.'
Palmer agreed that BayWa also promised to strengthen commercial ties with Europe, offering further opportunities for New Zealand growers.
'I am confident that BayWa will bring some surety to the apple industry, with their stated intent of lifting the returns to growers,' he said.
'As a Jazz and Envy grower myself, I look forward to the continuation of the development of these exceptional brands for the betterment of the New Zealand growers.'
