Seeka Limited buys Aongatete Coolstores for $25m

Seeka Limited will buy kiwifruit orcharding, packing and coolstore business Aongatete Coolstores Limited in the Bay of Plenty for $25 million.

Seeka made the announcement today and said it planned to retain all permanent staff and would continue to provide services and support to growers who have been supplying fruit to Aongatete.

Seeka chief executive Michael Franks said the acquisition was aligned to the company's growth strategy and built on Seeka's kiwifruit foundation.

"Aongatete's kiwifruit packhouse and coolstore facility processes around 4.5m trays of green and gold fruit providing Seeka additional market presence in a growth industry.

"The acquisition compliments our existing business with further infrastructure in a great growing location," Franks said.

Aongatete is an integrated kiwifruit orcharding and post-harvest company operating across the Bay of Plenty.

Aongatete managing director Allan Dawson said growers' futures stood in good stead with Seeka.

"Seeka brings its own skills and economies of scale and recognises the Aongatete site will remain a centre of excellence and innovation for the kiwifruit industry."

Franks said Seeka was committed to the local area and saw benefits for both existing and new staff and grower partners.

"Seeka's significant size and scope brings increased capacity and ability to support the Aongatete site during peak harvest times. With Seeka's geographical spread throughout the Bay of Plenty transport distances can be reduced with fruit processed closer to where it is grown."

Seeka's Grower Shares Scheme and Employee Share Scheme will be offered to new associates and was an opportunity for growers and staff to benefit from being part of Seeka and share in returns generated by the business.

The purchase is anticipated to settle on March 18 and the facilities would be rebranded as Seeka Aongatete.