Allied Workforce to buy majority stake in CLS

Listed blue collar labour hire firm Allied Work Force (AWF) is set to buy a 64 per cent stake in the agricultural labour hire business Contract Labour Services (CLS).

CLS provides seasonal labour to apple, wine, horticulture and agricultural businesses in Gisborne, Hawke's Bay, Nelson, Blenheim and Canterbury.

The purchase price will depend on CLS' earnings before interest, tax, depreciation and amortisation (ebitda) in the year ending September 30.

Payment will be in cash and the sale is expected to be settled on September 30, after the annual results are produced.

AWF provides labour for firms working in the distribution, manufacturing, processing, infrastructure and construction industries.

AWF's shares were up 1c at a fresh high of $1.54 today. The stock listed at $1.50 on July 6.

- NZPA