Deal signals new era of scale, capability and value
Meat processors ANZCO Foods and Greenlea Group have agreed for the former to acquire the latter, pending Commerce Commission and Overseas Investment Office approval.
They say the result will be a bigger, stronger and more diversified red meat business that combines the best of both, focused on creating more value for Kiwi farmers on world markets. If the deal is approved, ANZCO intends to run Greenlea as a standalone entity, maintaining the Greenlea brand and existing agreements with employees, farmers and customers.
Greenlea Premier Meats managing director Tony Egan says the proposed sale is about securing Greenlea’s legacy and finding 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. We have carefully considered a range of options that explored the best outcomes for Greenlea’s team, farmers and customers.”
He says ANZCO is a trusted entity with a long track-record of investing in its businesses and in NZ, and it is the right partner to take the business forward. “ANZCO shares a similar operational culture, values and respect for people, farmers and local communities, and brings the right complementary, strategic and operational capability that will create future growth for our team and our farmers. “Importantly, the Greenlea brand will remain, and the Greenlea Foundation Trust will continue its important community support work.”
Tony Egan will continue to be involved in the business as an advisor and will be on the Greenlea board.
Peter Conley, ANZCO Foods chief executive, says Greenlea is a successful, well-run business that his company has admired for a long time. “There is strong strategic and operational alignment between the two businesses, with complementary products, export markets and operating footprints across NZ. “We’re looking forward to working with and supporting the Greenlea team and farmers to continue supplying premium quality red meat products to key customers in NZ and globally.”
He says Greenlea brings knowledge in areas that ANZCO can learn and grow from, with an operating footprint mostly based in the northern half of the North Island. 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. “If the transaction is approved, we will take our time with the integration process to ensure we successfully transition and maximise the strengths for both businesses.”