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Animal nutrition company SealesWinslow could soon be part of rural service provider, Farmlands.
SealesWinslow is owned by farm nutrient co-operative Ballance, which says it was approached by Farmlands earlier this year and has agreed to the sale.
Before the sale can proceed, it must be approved by the Commerce Commission. It is anticipated that this regulatory process will take at least three to four months.
Ballance says it will work closely with the Commerce Commission and Farmlands to ensure that all necessary steps are taken to meet regulatory approval requirements.
The divestment will allow Ballance to focus on its core business, and we will use the sale proceeds to pay down debt, says Matt Skilton, Ballance’s CFO.
“Farmlands interest in acquiring SealesWinslow is a testament to the customer offerings and strategic assets of this business. This is also a great opportunity for the SealesWinslow employees to be part of a larger animal nutrition Group,” says Skilton.
Throughout this ownership change, SealesWinslow will continue to deliver high-quality service levels and nutritional solutions to meet all customer needs, staying true to the legacy of excellence since its establishment in 1968, Ballance says.
Farmlands chief executive Tanya Houghton says SealesWinslow is a recognised leader in animal nutrition, built on a similar ethos to Farmlands.
“It has a long history, including mergers and growth, aimed at providing the best products and best value to Kiwi farmers,” says Houghton.
“We’re excited about the prospect of buying SealesWinslow and supporting it to be an important part of our overall nutrition business.”
This potential purchase will provide the SealesWinslow team with a strong future, ensuring the business will be even more successful than it is today, claims Farmlands. This agreement broadens Farmlands' manufacturing footprint into the North Island and complements their existing South Island infrastructure, resulting in a nationwide animal nutrition solution.
Houghton believes it’s important to look at areas of overlap and duplication in local co-operative ownership where there’s opportunity to develop greater efficiency for New Zealand farmers – particularly in a tough operating environment.
“Farmlands exists to create better outcomes for New Zealand farmer customers and shareholders. In this instance, our focus is specifically around animal nutrition, which is such an important on-farm input, so it’s an area we are very focused on,” she says.
The purchase of SealesWinslow also ensures that critical animal feed assets stay in New Zealand co-operative ownership, maintaining local control of this part of the supply chain.
The announcement follows Farmlands’ last major partnership decision in 2022 which established Fern Energy by combining Farmlands’ fuel business with Southfuels for reach, expertise and scale. Fern Energy is now the largest rural fuel provider in New Zealand.
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