New capital transforms Verda NZ

INTERNATIONAL: The Verda Outdoor Showroom Display for an architectural presentation in Paris.PHOTO/SUPPLIED

Rotorua-based outdoor wood specialist Verda New Zealand has announced it is forming a new entity after a successful capital-raising exercise.

Local and international investors have come together to form Verda International Ltd (VIL). VIL has purchased all of Verda New Zealand's assets, brands and IP, and has taken a 47 per cent stake in the company's sawmill in Napier.

VIL chief executive Grant Butterworth said the deal was the culmination of 12 months of work to form the new entity, attract new investors and finalise the company structure.

"Verda has a unique position with a high performance, engineered range of products," Mr Butterworth said. "Verda International Limited's strategic goal is to be one of the premium outdoor wood product brands in high value, global markets."

The company is currently in negotiations to take on several high profile, global architectural projects, having already collaborated with architects and landscape designers from around the world in recent years.

Mr Butterworth said this new deal set a platform for growth for Verda products into numerous export markets.

"Verda has invested heavily in product and new market development in recent years despite the significant impact on the wood processing and construction sectors resulting from the Global Financial Crisis.

"The investment in the new products and markets is now flowing through by way of exponential sales growth, brand equity and recognition and support from high-end architects and designers in several global markets."

Mr Butterworth said the formation of VIL signalled a turning point for New Zealand's wood processing sector.

"Low demand for sawn-timber products, the rising value of the Kiwi dollar and escalating prices for exported logs into China has made business very challenging.

"This deal is an example of how wood processing can succeed and thrive if you focus on developing your products, refining your processes and meeting your customer's needs."

He said VIL had received strong support from Kiwibank and New Zealand Trade and Enterprise.

New Zealand Trade and Enterprise customer manager Stephen Blair said Verda's success was due to the hard work the company had put into building an international brand, understanding its market and staying focused.

Mr Blair said Verda had been persistent in tough economic times and had been focused by not tackling too many markets at once.

"If we want to get away from just exporting logs, we need more companies like Verda to create high-value products," he said.