Packaging manufacturer Pact and NZ fruit marketer T&G are looking to pool their resources.
Packaging manufacturer Pact and NZ fruit marketer T&G are looking to pool their resources.
T&G Global, the New Zealand fruit marketer controlled by Germany's BayWa, has sold its crate hire unit to packaging manufacturer Pact Group for $21 million as part of a deal where the two companies look to pool their resources and build up the business.
The sale of T&G's Fruit CaseCo is expected to be completed about July 1, with Pact acquiring the crate hire firm's assets, brands and trademarks while continuing to operate from T&G-owned and leased sites around New Zealand.
T&G will keep using Fruit Case Co's internal crate business and Pact will use T&G Transport to move crates between depots.
As part of the deal, T&G and Pact said they would support Fruit Case Co's business through shared research, technology and business improvements.
"For T&G, the supply arrangements with Pact are part of our strategy to strengthen relationships with market leading experts and focus T&G's resources on strengthening its position as a leading producer, marketer and exporter of fresh produce," chief executive Alastair Hulbert said.
"Pact's access to innovative developments in crate design and packaging solutions, and its commitment to invest in crate pooling and washing in New Zealand, will be of significant benefit to T&G, our growers and our retail customers."
The divestment comes after T&G embarked on a series of acquisitions over recent years, such as Hawke's Bay Apollo Apples, tomato growers Great Lake Tomatoes in the Bay of Plenty, and Rianto in Waikato, which boosted annual revenue by $63.4 million in 2015. T&G shares rose 2 per cent to $2.50 this year.
