Elders mum on PGW
Australian rural services company Elders has downplayed media speculation it is raising funds for a buyout of New Zealand’s largest agricultural services company PGG Wrightson (PGW).
The family-owned company has bought the 50% stake formerly owned by Elders Australia Ltd and the other 50% holding previously held by Sredle Rural Services for an undisclosed sum.
Elders Australia has been under pressure to quit its non-core assets by its banking syndicate across the Tasman. The Australian company signalled its intention of the planned sale of its NZ assets in its half-year result, released back in May.
Sredle Rural Services, which current Elders NZ managing director Stu Chapman (pictured) is a shareholder, has Auckland businessman Eric Spencer as its biggest investor.
Chapman told Rural News he was sorry that Sredle is selling its stake, but the Carr Group's full ownership was good for the business' long-term future.
"It does mean certainty and continuity for the business as there would likely to have been a sale of our stake at some stage down the track."
According Carr Group managing director Craig Carr, Elders NZ will continue to operate under the leadership of Chapman and there are no immediate plans for change for either business operation.
"It will be business as usual," he says. "As we settle in, we'll look for synergies between both businesses to ensure we achieve efficiencies and also to grow the business."
Carr told Rural News 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 and the two companies share similar ethics and a desire to improve farmer profitability.
He added that keeping Chapman on as managing director was critical and looked forward to working with him to take Elders to another level.
The Carr Group currently employs more than 400 staff in New Zealand, Australia, India, Africa and the Middle East. Carr says the Elders NZ acquisition will take the combined group's annual revenues to more than NZ$300 million.
