Overseas Investment Office has approved the sale of
Edendale Nursery to forestry biotech company ArborGen.
Photo by Stephen Jaquiery.
Forestry biotech company ArborGen has expanded its stable
of nurseries with the acquisition of Edendale Nursery in
ArborGen, in which NZX-listed Rubicon has a 31.67% stake, is
the largest supplier of seedlings in New Zealand.
It sells up to 25 million trees annually, predominantly in
the North Island, and owns five production nurseries, two
seed orchards, and a manufacturing facility for the
production of radiata varietal seedlings.
Edendale Nursery grows seedings for large corporate forest
owners, forest managers, consultants and farm foresters in
Otago and Southland, with the capacity to produce up to 10
million seedlings annually.
The acquisition enabled ArborGen to supply customers
throughout both the North and South Islands, while Edendale
Nursery's customers would benefit from the extensive
investments the company had made to develop seedlings with
superior genetics for planting in New Zealand's forests,
ArborGen's general manager of Australasian operations, Greg
ArborGen was specifically sought by the nursery's owners to
take over the business.
Edendale Nursery (Southland) Ltd managing director Ron Hinton
said they were very pleased to know the business they had
worked so hard to develop since 1987 would continue to grow
The nursery's land would be leased from the present owners
with ArborGen holding an option to purchase the land.
ArborGen Australasia is a wholly owned subsidiary of ArborGen
Inc which has its headquarters in the United States. ArborGen
operates from 20 locations and produces 350 million tree
Approval for the transaction had been received from the
Overseas Investment Office.
The excellent run for forestry prices seems set to end, ASB
rural economist Nathan Penny says.
In the latest ASB Commodities Weekly, Mr Penny said the
string of record prices had attracted Russian and North
American supply back to the Chinese market and that should
put a cap on further price rises, if not lead to a fall.