The business is the only such store in the town and in the heart of a dairy area.
"They won't be shutting it down," joint vendor Trevor Harris told Rural News. "The first lease on the business is six years and they've a six year renewal option after that so I'd say they're here to stay.
"The turnover's about $3m and there a lot of RD1 people in the area."
RD1 general manager Nick Berry says there are 73 Fonterra suppliers in the area. "So the acquisition supports RD1's current strategy to have services available to all Fonterra farmers."
The next nearest RD1 stores are 28km north at Dargaville or 34km east at Maungaturoto.
"RD1 will be employing the existing Ruawai Farm Supplies staff to ensure they are given the opportunity to stay in the community and their chosen field," adds Berry.
Harris, who is retiring, says he cannot disclose the sale price because of a confidentiality agreement.
"It's probably about half what we'd have got four years ago but it's still enough for us to get out smiling."
Ruawai Farm Supplies ceases trading February 28 and will re-open as RD1 on March 1.
