Newly listed labour hire firm Allied Work Force is set to buy a 64 per cent stake in agricultural labour hire business Contract Labour Services.
CLS provides seasonal labour to apple, wine, horticulture and agricultural businesses in Gisborne, Hawkes Bay, Nelson, Blenheim and Canterbury, with a crew of more than
700.
At its July 6 listing, Allied's managing director Simon Hull said he saw opportunity to buy small regional labour hire firms and planned to move into the horticulture industry, supplying seasonal pickers to orchards - a market few labour hire firms tapped.
Through CLS, Allied planned to expand its agricultural offering to other industries and other geographic areas where it has established branches.
The purchase price will depend on CLS' trading profit in the year ending September 30.
Payment will be in cash and the sale is expected to be settled on Friday, after the annual results are produced.
Allied Work Force provides casual labour for the distribution, manufacturing, processing, infrastructure and construction industries.
Its shares closed steady at $1.53 yesterday, after listing at $1.50.
