Kiwifruit on GPG's menu

By PHILIPPA STEVENSON agriculture editor

Kiwifruit is likely to be next on the menu for new-look produce marketer Turners & Growers, after its merger with apple exporter Enza.

Tony Gibbs, the chairman of Turners and Enza, said yesterday the merger and a likely Stock Exchange listing next year would be a major task. He also said he was keen to add kiwifruit to his portfolio.

Enza and Turners are controlled by the Sir Ron Brierley investment vehicle Guinness Peat Group (GPG) which owns 100 per cent of Enza and has 46 per cent of Turners. Gibbs is the New Zealand head of GPG.

Privately owned Naboa Corp, Ecuador's biggest banana exporter, owns 25 per cent of Turners and the balance of the shares are owned by about 800 growers.

Enza chief executive Michael Dossor, a former Turners executive, has been picked to head the merged company, to be known as Turners & Growers. The name Enza will stay as the company's international marketing arm, its major brand globally, and possibly locally as well.

GPG will be bought out of Enza in a share swap with Turners shares.

A public float to raise between $50 million and $70 million is planned in the first quarter of next year. Suppliers will be offered shares.

The two companies' independent directors will appoint independent valuers whose reports are expected by November. The proposal is likely to be voted on at a special meeting immediately following Turners' annual meeting on November 8.

Gibbs said yesterday his goal had always been to combine Enza and Turners, which went together "like a horse and carriage".

Teams from the two companies had agreed.

"It's what we've always said, that basically you've got Turners with a very large onshore capacity and infrastructure in terms of sourcing and domestic sales, and Enza has a very large offshore capacity," Gibbs said.

Asked about the possibility of repeating an Enza-style raid on the kiwifruit industry, Gibbs said: "Long- term that may be something for the future, of course.

"At the moment we're going to have our hands full getting this together and long-term kiwifruit is always a possibility."

Kiwifruit company Zespri is grower-owned and has the sole right to export kiwifruit worldwide, except to Australia. But Enza, as the single exporter of apples and pears until 2000, was once in the same position.

That year, GPG and fellow corporate investor FR Partners exploited a loophole in Enza's constitution and leased orchards to qualify as growers. They then bought 40 per cent of the company, took over its board and installed Dossor as chief executive.

Zespri executive chairman Doug Voss said kiwifruit marketing was in growers' hands "and what they may decide in the future, I don't know".

But now kiwifruit growers, who were better off than apple growers were when GPG and FR began buying Enza shares, were more interested in growing and strengthening the existing business.

Gibbs said the merged company's headquarters would be Turners' Auckland offices but the Enza marketing arm, which now had up to 40 competitors, would remain Hastings-based. He said the company would be very attractive to a range of growers who would be encouraged to grow more product for export.

Turners exported onions to Europe, squash to Japan, carrots to South East Asia and tomatoes to Australia.

These and other products could be brought into Enza's supply chain to offer overseas importers a basket of fruit and vegetables.

"This is not a high margin business. You've got to have quantity."

Pipfruit Growers NZ chairman Phil Alison said the merged company could offer a one-stop shop for exporting a variety of crops.