Bay of Plenty-based post-harvest service providers EastPack and Satara Cooperative Group have announced plans to merge, pending shareholder approval, to create a fully grower-owned supply cooperative in early 2011.
In a joint statement reported by the NZPA, the chairmen of the two companies said a merger would not only optimise efficiencies and quality, but also support the global success of marketer Zespri, and the continuation of its control of New Zealand kiwifruit exports.
The merger is subject to conditions including 75 per cent shareholder approval of each entity, approval from banks, grower commitments, and limits to the number of shareholders of each company exercising minority buy-out rights.
Satara's chairman Hendrik Pieters told the NZPA that Satara was excited that the proposed merger would mean 100 per cent grower ownership.
EastPack chairman Ray Sharp said that to realise the company’s vision of delivering world-class fruit from orchard to market, continued capital investment was required to upgrade and expand post-harvest facilities.
"The merger will give growers the collective financial clout through their representatives on the EastPack board to make these longer term investment decisions today, without placing short-term pressure on orchard-gate returns and rebates."
EastPack chief executive Tony Hawken would head the new merged cooperative, under grower directors from Satara and EastPack as well as two independent commercial directors. Board elections will be held at an annual meeting in April 2011, reported the NZPA.
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