Heartland pays $100m for PGG Wrightson Finance
Heartland, PGG Wrightson agree to hock each other's products as part of the deal.
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The sale of PGG Wrightson Finance to Heartland New Zealand (NZX:HNZ) has been completed, with Heartland paying $99.5 million for the finance company.
As part of the deal PGG Wrightson (NZX:PGW) has entered into a distribution agreement in which Heartland will offer financial products and services to PGG Wrightson’s agricultural clients.
PGG Wrightson will in turn make referrals to Heartland from its network of farmer clients.
George Gould, managing director of PGG Wrightson, says the completion of the deal is an important milestone and marks the start of a significant new business relationship between PGG Wrightson and Heartland.
“Both companies are passionate supporters of the agriculture sector, and together we represent a compelling client service proposition.”
Mr Gould says PGG Wrightson is delighted to be able to offer its customers a range of financing options through the distribution arrangements entered into with Heartland.
“Further, PGG Wrightson’s new shareholding in Heartland supported the company’s commitment to the partnership, with the ultimate aim of providing enhanced lending support and investment products for our clients.”
To maintain adequate levels of capital HNZ decided to raise $55m, subsequently increased to a proposed $58m, before eventually raising $57.3 million.
Niko Kloeten
Wed, 31 Aug 2011
Wed, 31 Aug 2011
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Heartland pays $100m for PGG Wrightson Finance
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