Fonterra acquires rural supplies chain RD1

Fonterra chief executive Andrew Ferrier. Photo / Dean Purcell

Fonterra has assumed full control of rural supplies company RD1, the dairy cooperative announced today.

The company sold a 50 per cent stake in the company in 2006 to Australian rural supplies chain Landmark, owned by AWB - but had the right to buy back its share if either company was sold.

Fonterra chief executive Andrew Ferrier said that opportunity arose in December last year, when Canadian company Agrium purchased AWB.

"RD1 is a solidly performing company with strong farming roots and it's great to have it back in the family."

Ferrier said RD1 had boosted revenues from $394 million to $741 million since 2006.

"With 100 per cent ownership of RD1 we can do much more with the company in order to deliver value to our shareholders," he said.

- NZ HERALD ONLINE