Bolt firm joins $11b empire

By DITA DE BONI

German giant Wurth Group has bolted New Zealand's largest nut and bolt maker on to its $11 billion global empire.

Wurth has bought Mangere-based EDL Group for an undisclosed price.

EDL, which distributes over 20,000 types of metal fasteners sourced from all over the world, will become the Asia-Pacific base for Wurth's burgeoning industrial sector. It will retain its name, brand and operations in Australia and New Zealand.

Stephen Driver, a former trade commissioner to Germany, helped to promote the deal.

He said the Germans were impressed with EDL's ability to open branches and essentially "clone" its industrial nuts and bolts business.

With sales of $30 million, 10 branch offices (including two in New South Wales) and almost a third of its product exported to Australia, EDL was also robust enough to expand further in the Asia-Pacific region with the help of foreign capital.

"This is a case where we can see the true benefits of foreign direct investment," said Mr Driver.

"It's about taking a New Zealand company and connecting it to international capital so we can grow more vigorously.

"That's more jobs, more profit, more tax."

Wurth has expanded into 76 countries from a mother-and-son business started in 1945. It has a combined staff of 34,000 people.

EDL was established in 1975 and its staffing has risen from six at the end of 1980 to 120 today. Turnover has increased 30 times in that period.