Bay staff stay in buyout of apple firm

Eddie (left), Ricks and Lou Crasborn are now part of Freshmax, making the company the country's third-largest apple exporter. Photo / Supplied

Crasborn Group will be unchanged after its acquisition by Freshmax, says managing director Eddie Crasborn

The acquisition, announced on Thursday, will make Freshmax the country's third biggest apple exporter behind Mr Apple and ENZA.

"There has been a change in ownership but exactly what you see here today is what you will see tomorrow," Mr Crasborn said.

"I think Freshmax sees it as a company they don't have to interfere too much with. They certainly purchased it not only for its good assets but also for its organisation and integrated systems."

Crasborn packs and markets fruit grown on its own orchards and offers packing and storage services to other producers.

Australian-based Freshmax is one of the largest fresh-produce marketing and distribution operations in the pan-Pacific region.

The acquisition, subject to conditions including approval under the Overseas Investment Act, will cause no job losses for Crasborn's 80 permanent employees. The Freshmax Group employs more than 500 people.

The Crasborn brothers - Eddie, Lou and Ricks - will remain in key positions.

Eddie Crasborn said the deal was done through a mixture of shareholdings and cash.

It met Crasborn concerns about company growth, succession and security of employment, he said.

"We have a wonderful team of very strong personnel within our group that have really assisted us in building this organisation. For a family business that has gone very well and we want to make sure that they had a long-term future under Crasborn and in the apple industry. This process allows that to happen very successfully."

Crasborn and Freshmax formed Interfruit Packing Hawke's Bay eight years ago, which purchased Opey Farms in Hastings and other orchards in 2010.

Earlier, Crasborn used Freshmax to market their fruit.

Eddie Crasborn will join the Freshmax Group board and the Crasborn family will retain property assets.

Freshmax was established in New Zealand in 1995 and privatised in 1997 through a management buyout which brought together ENZA subsidiaries Freshmax and Frucor Produce.

In 2006 Wolseley Private Equity partnered with Freshmax and acquired several companies in New Zealand and Australia.

New Zealand's private equity firm Maui Capital purchased Wolseley's majority shareholding in 2011.

In 2012 Freshmax established a joint venture with California fresh-fruit marketer Prime Harvest.

Mr Crasborn said Freshmax's Australian interests, which include orchards, may open a transtasman door.

"There will be a stronger opportunity but there are other opportunities with them in other countries as well. We have always had strong markets in many countries but they are going to bring in an added dimension to those relationships."

In April it was announced family-owned Apollo Apples would be sold to T & G.

Pipfruit New Zealand CEO Alan Pollard said industry consolidation was a continuing trend.

"There has been a lot of confidence in the industry over the last two or three years and I'm encouraged it is still out there.

"The fact that organisations of this scale are prepared to invest like they are reflects confidence in the industry and bodes well for the future.

"There are economies of scale to be had and this is what we need to achieve our billion-dollar strategy."

Pipfruit New Zealand has a $1 billion target for exports by 2022.

"Last year was a good year return-wise and we know there are a lot of new plantings occurring at the moment which is great, some of them will come on-stream shortly, so more trees obviously will produce more volume.

"There is investment happening around technology among the larger players and all of that is going to contribute to the sort of volumes and quality we need for our billion-dollar target."