Turners & Growers has entered an agreement to acquire the remaining 30 per cent shareholding in Delica Limited, effective 31 May.
The New Zealand-based group already held the controlling 70 per cent stake in Delica Limited, who owns 100 per cent of Delica New Zealand and Delica South America.
Delica Limited also owns 85 per cent of Delica’s Australian subsidiary and 75 per cent of the company’s North American subsidiary, with the remaining shareholdings in the hands of key staff.
“This is an exciting milestone on the Delica journey,” Delica Global general manager Darren Drury said.
“Our business has grown rapidly since Turners & Growers invested in Delica in 2007.”
The deal was approved after New Zealand Exchange Limited (NZX) agreed to grant Turners & Growers a waiver from NZSX Listing Rule 9.2.1(a), enabling it to enter into the transaction without the need to seek shareholder approval.
Turners & Growers' major shareholders BayWa Aktiengesellschaft and Bartel Holdings Limited have indicated they would have given approval to the transaction had it been put to a shareholder vote.
The transaction has also been supported by Turners & Growers' independent directors.
Delica’s turnover for the 2012 financial year was just under NZ$200m (US$161m).
The group has a significant presence in the Asia Pacific market through key products such as apples (including its trademark varieties Jazz and Envy), table grapes, asparagus and cherries.
“As part of our strategy with the proposed acquisition, Turners & Growers has a significant opportunity to grow the trading business to and within Asia, one of the most dynamic and promising future markets in the world for fresh fruit,” Turners & Growers chairman Klaus Josef Lutz said.
“This will improve operating cash flow to the benefit of Turners & Growers Limited and, ultimately, its shareholders.”
