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Christchurch-based meat processor and exporter Anzco Foods has signed a deal to buy Greenlea Group.
If successful, the Anzco-Greenlea combined business would become No 3 in the country in revenue, among the top four processors of Silver Fern Farms, Affco and Alliance Group.
The wholly-owned company by Japan’s Itoham Yonekyu Holdings is already one of the nation’s largest beef and lamb exporters, with $2.2b of yearly turnover and employing nearly 3000 staff.
Privately-held Greenlea is the fourth-largest beef exporter with an annual turnover of $600 million, two Waikato processing sites and a 500-plus staff roll.
The deal for an undisclosed sum includes Greenlea Premier Meats and its interests in Waitoa Estate and other businesses.
To proceed, it must get sign off from the Commerce Commission and Overseas Investment Office.
Anzco sees Greenlea continuing as a stand-alone business and maintaining the brand and existing agreements with employees, farmers and customers.
Chief executive Peter Conley said Greenlea was a successful, well-run business the company had admired for a long time.
"If the transaction is approved, we will combine our strengths and operate Greenlea unchanged as a stand-alone entity, to ensure a smooth transition following deal completion," he said in a statement.
This approach would provide continuity and certainty for Greenlea staff, farmers and customers while future opportunities were explored to grow the combined business, he said.
"There is strong strategic and operational alignment between the two businesses, with complementary products, export markets and operating footprints across New Zealand."
Anzco would work with and support the Greenlea team and farmers to continue supplying red meat products to domestic and international customers, he said.
Greenlea Premier Meats managing director Tony Egan said the proposed sale would secure the Greenlea legacy.
He said they had looked to find the "right buyer at the right time" as the family-owned business shaped its succession plan.
"Greenlea has a long and proud history in the meat industry as a successful business that has been built over more than 30 years. Securing the business’ long-term success and growth has been a key priority in succession planning."
Mr Egan said a range of options had been explored to find the best outcome for Greenlea’s team, farmers and customers.
As a trusted company with a long track-record of investing in its businesses and in New Zealand, Anzco was the right partner to take the business forward, he said.
He said the proposed new owners shared a similar operational culture, values and respect for people, farmers and local communities, and its strategy matched Greenlea plans to create future growth.
"Importantly, the Greenlea brand will remain, and the Greenlea Foundation Trust will continue its important community support work.”
Mr Egan will continue to be involved in the business as an advisor and on the Greenlea board.
Mr Conley said Greenlea would match and strengthen its overall business.
"Greenlea brings knowledge in areas that Anzco can learn and grow from, with an operating footprint predominantly based in the northern half of the North Island, and Anzco, with its South Island and lower North Island focus, will bring capability and strengths in areas that will support Greenlea’s growth, particularly in value-add processing."
Further updates will be provided when the regulatory approval process is completed.
As well as red meat exports, Anzco produces manufactured food and healthcare products, while other Greenlea businesses include Waitoa Tannery and Waitoa Natural Proteins.
