Heartland settles aquisition of PWF

Heartland New Zealand's acquisition of PGG Wrightson Finance has been finalised.

Yesterday, PGG Wrightson managing director George Gould described the completion of the deal as an "important milestone".

It marked the start of a significant new business relationship between PGGW and Heartland, Mr Gould said.

The price paid for the shares in PWF was about $99.5 million, being an amount equal to its adjusted net tangible assets.

PGGW has entered into a distribution agreement whereby Heartland will offer financial products and services to PGGW's agri-clients and PGGW will making referrals to Heartland from its network of farmer clients.

PWF outgoing chief executive Mark Darrow was pleased the company had been given the opportunity to "realise its true potential" under Heartland ownership.

The potential for a well-funded finance business in the agri-sector was substantial, especially when partnered with a brand as strong as PGGW.

Heartland had acquired a "great business with a great team" and had an amazing opportunity to develop it further, Mr Darrow said.


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