September 27, 2007

New Zealand's Agri-feeds purchases 4 Seasons Molasses

New Zealand Agri-feeds, a PGG Wrightson subsidiary, will acquire the business of 4 Seasons Molasses from Gardner Smith NZ, while Gardner Smith will acquire Agri-feeds' port operations in Mt Maunganui and New Plymouth.

Chief executive Barry Brook says the buyout will further strengthen PGG Wrightson's commitment to the growing New Zealand (NZ) animal feed market.

4 Seasons Molasses is a NZ national importer and distributor of molasses feed supplements that boost energy levels and promote animal health in dairy herds.

Gardner Smith is a leader in the aggregation and value added supply of tallow, vegetable oils and their derivatives, servicing producers and customers in the food, personal care, chemical and livestock feed industries.

As part of its operations Gardner Smith's subsidiary, Pacific Terminals, is a major bulk liquid storage operator in both New Zealand and Australia and China.

Gardner Smith NZ general manager Scott Mitchell says the transactions will strengthen their core business through the addition of the Mt Maunganui port operations and further provide enhanced opportunities for the port storage business.

The port transaction will result in a capital gain to PGG Wrightson of approximately NZ$5 million. The transactions will be effective on October 1, 2007.