Turners and Growers mops up remaining 30% of Delica for $25.8m

Delica was set up in 1994 to sell citrus, cherries, asparagus and berry fruit.

Turners & Growers, controlled by Germany's BayWa Aktiengellschaft, has mopped up the 30 percent in specialist producer exporter Delica it does not already own from managers for $25.8 million.

The fruit marketer has been granted a waiver from having to hold a shareholder vote on the transaction after BayWa, with 73 percent and Bartel Holdings with about 12 percent, said they supported the deal.

Delica was set up in 1994 to sell citrus, cherries, asparagus and berry fruit. It formed a joint venture with Turners & Growers in 2007.

The purchase price entails $17.5 million upfront and four payments of about $2.06 million over the next four years. The company hired an independent valuer to give a valuation range for the business, it says.

Buying Delica is part of the company's strategy "to grow its trading business to and within Asia, further develop the global trading capability of Turners & Growers and to rationalise operating costs for the benefit of New Zealand", chairman Sir John Anderson says in a statement.

Shares of Turners & Growers last traded at $1.60, valuing the company at about $188 million. Excluding Turners & Growers, there are five allocations of shares in Delica, mainly held by company executives.

(BusinessDesk)