The NZ/China Free Trade Agreement (FTA) upgrade has brought little joy to the dairy industry.
NIGN is currently a wholly owned subsidiary of New Image Group. Director Alan Stewart says it is looking for a partner excited by NGIN's recent rapid growth and the further potential for its products, especially from the change to China's "one child" policy and Asia's aging populations' nutritional needs.
"New Image Group has been manufacturing in New Zealand and exporting nutritional and wellness products for more than 30 years," Stewart says. "However, following CNCA (Certification and Accreditation Administration of the People's Republic of China) registration, making us one of a select few New Zealand companies fully licensed to export infant formula into China, we have experienced strong demand."
Infant formula accounted for 36% of NIGN's $35.4 million revenue for the year to the end of June 2015. Those sales included its goat milk-based infant formula brand, Baby Steps.
"Full integration from research and development, strategic partnerships with goat milk suppliers, wet blending, manufacturing and packing ensures end-to-end quality and control of the process," Stewart says.
Whole and skim milk powder products contributed 25% to revenue, nutritionals and wellness products 10% and a further 29% of revenue was derived from contract manufacturing for the parent group's MLM subsidiary New Image International.
In August, Frost and Sullivan named New Image the New Zealand Nutritional Product Company of the Year. The international, strategic growth firm said New Image was evaluated on a variety of actual market performance indicators which include revenue growth, market share and growth in market share, leadership in product innovation, marketing strategy and business development strategy.
PwC has been appointed to manage the capital raising process and seek an investor with a minimum investment of NZ$10 million.
Stewart says the percentage of shareholding available in NIGN is open at this stage. Potential investors will be required to sign a confidentiality agreement to receive the company's Information Memorandum, after which they are invited to submit an indicative, non-binding offer.