PGG Wrightson to  Purchase Molasses Business

PGG Wrightson subsidiary Agri-feeds Limited has agreed to purchase the business of 4 Seasons Molasses from Gardner Smith NZ Limited. In a concurrent transaction, Gardner Smith will purchase Agri-feeds’ port operations in Mt Maunganui and New Plymouth.

4 Seasons Molasses is a national importer and distributor of molasses feed supplements that boost energy levels and promote animal health in dairy herds PGG Wrightson Chief Executive Officer Barry Brook says the purchase will further strengthen PGG  Wrightson’s commitment to the growing New Zealand animal feed market. “Agri-feeds has a 34 year history of growing with, and supporting, improved productivity in the dairy sector through strategic feed supplementation. The 4 Seasons business will complement our existing animal nutrition business and provide an extra level of opportunity for growth as the dairy industry expansion.

Gardner Smith NZ is a subsidiary of Gardner Smith (Holdings) Pty Ltd, a leader in the aggregation and value added supply of tallow, vegetable oils and their derivatives, servicing producers and customers in the food, personal care, chemical and livestock feed industries. As part of its operations Gardner Smith’s subsidiary, Pacific Terminals, is a major bulk liquid storage operator in both New Zealand and Australia and China.

Scott Mitchell, General Manager of Gardner Smith NZ Limited, says “We are delighted to have agreed these transactions, which will strengthen our core business in New Zealand through the addition of the Mt Maunganui port operations and further provide enhanced opportunities for our port storage business throughout New Zealand.”

The port transaction will result in a capital gain to PGG Wrightson of approximately $5 million. The transactions will be effective from 1 October 2007.

For further information:
Barry Brook
Chief Executive Officer
PGG Wrightson Limited
Tel: +64 3 372 0979

Scott Mitchell
General Manager
Gardner Smith NZ Limited
Tel: +64 3 379 0100