Carr Group bought a 50% holding from Elders Australia Ltd and 50% owned by Sredle Rural Services. The prices were not disclosed.
Elders Australia had been pressured by its Australian banking syndicate to quit its non-core assets in New Zealand. It signalled its sell intention in its half-year result released in May.
Sredle Rural Services, of which Elders NZ managing director Stu Chapman is a shareholder, has Auckland businessman Eric Spencer as its biggest investor.
Chapman told Rural News he was sorry Sredle was selling its stake, but the Carr Group’s full ownership would be good for the business long-term. “It means certainty and continuity for the business as there would likely have been a sale of our stake at some stage down the track.”
Carr Group managing director Craig Carr says Chapman will continue to lead Elders NZ; there are no immediate plans to change either business operation.
“It will be business as usual. As we settle in, we’ll look for synergies between both businesses to ensure we achieve efficiencies and grow the business.”
Carr says the opportunity to return Elders to Kiwi ownership was exciting for both companies.
“Bringing together two strong agribusinesses under one New Zealand entity will not only expand our footprint within New Zealand, but also across the global marketplace where we currently operate and export to more than 40 countries.”
Carr says it is a “good day” for New Zealand agriculture: the two companies share similar ethics and a desire to improve farmer profitability. Retaining Chapman as managing director was critical, he says.
Carr says the Elders NZ acquisition will take the group’s annual revenues to NZ$300 million.
“The investment by the Carr Group is a strong endorsement of the Elders business in New Zealand,” says Chapman.
“Clients… will continue to receive a high level of service, as we focus on supporting their day-to-day needs.”
Chapman agrees the Carr Group purchase and its strong South Island presence is likely to be good for the expansion of Elders’ business in the region, especially livestock.
“The 100% New Zealand-owned story is also likely go down well with farmers because there is concern in the rural sector about foreign ownership of land and businesses.”
No change is planned to the Elders name in the short term.
