Merger reaps rewards for Bay firms

Operations manager Nigel Martin with Celeste Bareiro. Photo/Supplied

Post-harvest kiwifruit company EastPack has announced a $1.5 million operating profit after paying transactor shareholder rebates of $3.9 million for the financial year ending December 31, 2013.

It was the first annual result since the company's merger with Satara and chairman Ray Sharp said both companies would have made an operating loss had it not been for the merger. The combined operating profit was lower than budgeted, due to lower than unexpected tray numbers packed. However, Mr Sharp said overall he was pleased with the results.

"The results show that following our March 2013 merger with Satara, which was the biggest merger in New Zealand's kiwifruit history, it is clear that both residual companies are better off post-merger by around $3 million," he said.

Mr Sharp said the merger had taken place during the year kiwifruit volume had shrunk as a result of the loss of Hort 16a Gold fruit production due to Psa and the continued conversion of Hayward production area to new varieties.

He said further benefits of the merger would be achieved in future as systems were further integrated.