Thursday, 16 May 2024 12:25

Scales purchases Bostock assets

Written by  Staff Reporters
Scales Corporation managing director Andy Borland says the company is pleased to announced its purchase of Bostock Group orchards. Scales Corporation managing director Andy Borland says the company is pleased to announced its purchase of Bostock Group orchards.

Scales Corporation is acquiring a number of orchard assets from Bostock Group.

According to an announcement to the NZX, the transaction includes 240 hectares of planted orchard area comprised of  114 hectares of owned orchards and the assignment of 126 hectares of leased orchard.

The total acquisition, priced at $47.5m, also includes the purchase of 50% of Profruit (2006) Limited held by Bostock.

At the same time, Mr Apple will put its Blyth and Te Papa orchards up for sale, part of Scales’ strategy to improve Mr Apple's margins.

By acquiring the Bostock orchards and selling the Mr Apple orchards, the company will broadly maintain its total orchard area while achieving a meaningful uplift in its premium variety volumes.

Scales Corporation managing director Andy Borland says the company is “extremely pleased” to announce the transaction.

“Scales and Mr Apple have worked closely with John Bostock and his team over multiple decades and expect to continue to work closely together to collectively grow the industry,” Borland says.

“Bostock orchards are renowned for their premium quality produce and the orchards being transferred are optimally located, with strong strategic alignment to existing Mr Apple orchards,” he adds.

Borland says Scales Corporation’s Mr Apple strategy is to focus on the sale of premium varieties to Asia and the Middle East markets, while driving improved margins from the brand’s existing assets rather than expanding the asset base.

“The transactions announced will achieve those objectives,” he says. “DazzleTM has been a highly successful variety for Mr Apple, and this transaction materially accelerates our strategy of increasing DazzleTM volumes. By inheriting mostly mature blocks we will have higher volumes of DazzleTM apples from 2025.”

Bostock Group managing director, John Bostock, says he is pleased that Scales is acquiring the orchards.

“The distinction between ‘organic’ and ‘conventional’ fruit is of a lower significance in Asia, where DazzleTM has strong market appeal,” Bostock says.

“It is a natural fit for these orchards to be operated by Mr Apple and for the Bostock group to continue to service its customers in other markets with Bostock’s other varieties. There is a strong cultural alignment between our two businesses, and I feel confident that any staff moving between the growers will find themselves well at home at Mr Apple.”

Scales Corporation chair, Mike Petersen, says that migrating the orchard mix to favour higher percentages of premium varieties is a core strategic imperative for Mr Apple as well as the country’s broader horticultural industry.

“PVR varieties, such as DazzleTM, are more sought after than our traditional varieties, reflecting the superior colour qualities and eating experience,” Petersen says.

“This allows the industry to continue to invest, innovate and expand while also creating high-value employment opportunities,” he adds. “Profruit is an extremely well-run business and we are very pleased to move to outright ownership.”

The purchase is subject to closing conditions and is expected to be completed in early to mid-June 2024.

Meanwhile, the Mr Apple orchard sales are not expected to conclude until the second half of the year.

More like this

Featured

Case IH partners with Meet the Need

Tractor manufacturer and distributor Case IH has announced a new partnership with Meet the Need, the grassroots, farmer-led charity working to tackle food insecurity across New Zealand one meal at a time.

25 years on - where are they now?

To celebrate 25 years of the Hugh Williams Memorial Scholarship, Ravensdown caught up with past recipients to see where their careers have taken them, and what the future holds for the industry.

Rockit Global appoints COO

Rockit Global has appointed Ivan Angland as its new chief operating officer as it continues its growth strategy into 2025.

National

Machinery & Products

Yamaha acquires Robotics Plus

New Zealand based company Robotics Plus, a specialist in agricultural automation, has announced an agreement for it to be acquired…

Ecorobotix announces NZ dealership

Swiss-based Ecorobotix has announced its entry into the New Zealand market through a strategic partnership with Canterbury-based New Zealand Tractors.

Sorting unwashed potatoes made easy

Downs, a leader in potato reception, automated sorting, and storage, has introduced its new high-throughput optical sorter for unwashed potatoes…

Jumbo X saves time and money

A winner of a prestigious ‘Technical Innovations 2024’ award by FederUnacoma at the EIMA show in Italy, the Maschio Jumbo…

NH unveils specialty tractor

New Holland recently showcased its new-generation T4.120 F specialty tractor, giving New Zealand customers a closer look at the winner…

» Latest Print Issues Online

The Hound

Keep it up

OPINION: The good fight against "banking wokery" continues with a draft bill to scrap the red tape forcing banks and…

We're OK!

OPINION: Despite the volatility created by the shoot-from-the-hip trade tariff 'stratefy' being deployed by the new state tenants in the…

» eNewsletter

Subscribe to our weekly newsletter