Tru-Test buys milk storage firm from NDA for $73m

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

Tru-Test Group, the agri-tech group that ranked 16th on the TIN100 survey of the country's top research and technology firms, has bought milk storage and refrigeration firm Dairy Technology Services from local manufacturer NDA Group for $73 million.

The Auckland-based group bought the company after raising $5.4 million in a two-for-nine renounceable rights issue at 96 cents apiece, which it said would be used to help fund the DTS acquisition.

Though Tru-Test today says it will not disclose the value of the acquisition, the December offer document and later amendment put the purchase price at $73 million, subject to adjustments based on working capital.

The acquisition includes $68 million in non-current assets, of which $67 million are intangible, and will see Tru-Test take on up to $58 million in bank debt to help fund the deal.

Tru-Test expects DTS to add 40 percent to its earnings before interest, tax, depreciation and amortisation, which were $5.9 million in the 12 months ended March 31 last year on sales of $103.4 million.

The purchase follows on from Tru-Test's $1 million acquisition of Radian Technologies in December as it looks to provide more integrated support for dairy farmers, chief executive Greg Muir says in a statement. DTS employs 80 staff at its Taranaki manufacturing facility and administration and sales office in Hamilton.

"The dairy industry will increasingly need to integrate new technologies and services if it is to achieve the sustainable growth it seeks," Mr Muir says. Farmers "want stronger levels of support on farm to maximise the value of technology investments and ensure the efficient ongoing operation of farm systems".

Tru-Test manufactures livestock weigh scale indicators, milk metering equipment, electric and traditional fencing tools and dairy automation systems.

(BusinessDesk)


This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7440 0.0003 0.04%
AUD 0.9796 0.0015 0.15%
EUR 0.6914 0.0007 0.10%
GBP 0.5017 0.0001 0.02%
HKD 5.7680 0.0024 0.04%
JPY 88.9770 0.0350 0.04%

Commods

Commodity Price Change Time
Gold Index 1208.0 24.740 2015-04-01T00:
Oil Brent 58.2 2.590 2015-04-01T00:
Oil Nymex 50.0 4.030 2015-04-01T00:
Silver Index 17.1 0.462 2015-04-01T00:

Indices

Symbol Open High Last %
NZX 50 5835.6 5835.6 5835.6 -0.23%
NASDAQ 4894.4 4899.4 4900.9 -0.42%
DAX 11902.9 12113.0 11966.2 0.29%
DJI 17778.5 17778.5 17776.1 -0.44%
FTSE 6773.0 6856.4 6773.0 0.54%
HKSE 25214.3 25223.6 25082.8 0.38%
NI225 19141.9 19285.5 19034.8 1.20%