New Zealand fresh produce company T&G Global Limited (formerly Turners and Growers) is to buy the domestic fresh produce division of Freshmax NZ in a $30 million deal.
The Freshmax Group comprises one of the largest fresh produce marketing and distribution operations in the Southern Hemisphere.
The purchase deal includes three market sites (Auckland, Wellington, Christchurch) and distribution services throughout New Zealand.
T&G Global CEO Gareth Edgecombe said the purchase was is in line with the company's strategy for growth.
"We are proud to lead the consolidation of these two strong businesses which we believe will be a welcome catalyst of change to drive more efficient and effective ways of working with New Zealand growers and retailers.
"Freshmax NZ brings a strong team, operations and facilities and a large distribution services business which are all complementary additions to T&G's NZ Produce business," Edgecombe said.
T&G Global, managing director New Zealand Produce, Andrew Keaney said the acquisition brought excellent trading relationships and strong ongoing supply relationships in key categories.
"We're excited to bring together the combined strengths of the Freshmax and T&G teams, suppliers and customers into our business, and build a stronger combined presence in the New Zealand market.
"We're confident the acquisition will present opportunities for operational improvements for the wider fresh produce industry, deliver enhanced services to growers and open up new commercial avenues for our collective trade partners," Keaney said.
The deal had been signed and was subject to a number of conditions, including review by the Commerce Commission.
Both Freshmax NZ and T&G Global's NZ Produce business would continue business as usual until the necessary conditions were satisfied and the transaction was closed.