Wool Services entering new era with sale

The sale of New Zealand's largest wool exporter to private Australian interests is unlikely to sit well with its New Zealand farmer-shareholders, but could provide a channel to new global markets.

New Zealand Wool Services International is entering a new era, after completion of its more than $30 million takeover this week by Australian merino wool fashion specialist Lempriere Holdings.

Undercapitalised, partially in the hands of receivers and facing two aggressive takeover bids, Wool Services staff and management have been fighting at every turn for the past two years.

However, Lempriere had gained more than 90% of takeover acceptances, the outstanding 7% now compulsorily acquired.

Wool Services' annual turnover is about $200 million. It handles about 250,000 bales annually of scoured strong wool destined for the carpet market, bales fetching an average of $800.

Family-owned Lempriere is a specialist merino merchant with businesses in the United States, Argentina and South Africa and is a major supplier of fine wool to European, Japanese and US fashion houses.

Lempriere's takeover bid was revealed in September last year, the company having gained a 75% stake for $23.2 million, including an 11% management stake worth $3.41 million, and there was an additional $7.8 million on offer for the outstanding 25% of shares it did not own at the time.

Wool Services chairman Derek Kirke said the takeover would usher in a ''new era''. Lempriere had no intention of ''turning over'' its scouring assets to Cavalier, had no company restructuring plans and would be an ''active owner'', Mr Kirke said.

''They've a very large global wool structure, which will strengthen the company [Wool Services].''

The Commerce Commission granted authorisation to Cavalier Wool Holdings in 2011 to make an offer for Wool Services wool-scouring assets, the scourer later confirming it was planning capital raising in its attempt to buy the 64% of the company, which was owned by Plum Duff and Woolpak Holdings and under the control of a receiver. It is understood Wool Services will be delisted within two months and its board likely replaced.