July 4, 2011

Fonterra buys rural supplies firm RD1

Fonterra has taken over full control of RD1, a rural supplies company, the dairy firm announced Friday (Jul 1).

The company sold a 50% stake in the company in 2006 to Australian rural supplies chain Landmark, owned by AWB - but had the right to buy back its share if either company was sold.

Fonterra chief executive Andrew Ferrier said that opportunity arose in December last year, when Canadian company Agrium purchased AWB.

"RD1 is a solidly performing company with strong farming roots and it's great to have it back in the family," Ferrier said.

Ferrier said RD1 had boosted revenues from US$394 million to US$741 million since 2006.

"With 100% ownership of RD1 we can do much more with the company in order to deliver value to our shareholders," he added.