Wallace Corperation merger goes ahead
A multi-million dollar merger between Piako’s Wallace Corporation and Farm Brands’ parent company has been confirmed.
The merger, worth $104 million, was to be completed this week, and the new entity will be called Wallace Group Limited Partnership, and its headquarters will be based in Waitoa.
Under the terms of the merger, Auckland-based Farm Brands, owned by Modena Investments (NZ), contributed rendering plants in Timaru and Dunedin and a substantial export trading business based in Auckland which was focused on protein meals and tallows.
Wallace Corporation based in Waitoa contributed its Waitoa industrial site and businesses including the tannery, rendering plant and compost business, a casualty collection centre in Northland, Feilding operation and Hororata rendering plant.
All staff from the respective businesses being merged were being transferred across to Wallace Group.
The Farm Brands office in Auckland has been retained and will continue to operate the export trading activities under the Farm Brands name.
The new multi-million dollar entity will also acquire the assets and business of Dunedin rendering business, Keep It Clean.
The merger of the two businesses aims to optimise its processing capability, and Wallace Corporation chairman Sir James Wallace, is delighted to continue the evolution of the 80-year-old business.
The result of the merger will see the company develop higher value finished products, and establish an expanded casualty cow collection service in the South Island.
The two companies have had a long history of trading with one another and Farm Brands chief executive Hugh Spence said the merger is a very positive outcome for staff and supplier customers.
‘‘We’ll be able to deliver even higher levels of operational excellence.’’
Wallace Group has appointed Graham Shortland, formerly chief executive of Wallace Corporation, to lead the new company which will be headquartered at Wallace Corporation’s Waitoa site.
Farm Brands warehousing and distribution investment in USA and Holland was excluded from the merger.
Wallace Corporation’s farms, along with their investments in technology companies Aduro Bioploymers and Ligar Polymers and Chilean dairy farming business Manuka, were also excluded from the merger.
They will remain with Wallace Corporation.