The sale of T&G's Fruit Case Co is expected to be completed around July 1, with Pact acquiring the crate hire firm's assets, brands and trademarks while continuing to operate from T&G-owned and leased sites around New Zealand. T&G will keep using Fruit Case Co's internal crate business and Pact will use T&G Transport to move crates between depots.
As part of the deal, T&G and Pact said they will support Fruit Case Co's business through shared research, technology, business improvements.
"For T&G, the supply arrangements with Pact are part of our strategy to strengthen relationships with market leading experts and focus T&G’s resources on strengthening its position as a leading producer, marketer and exporter of fresh produce," chief executive Alastair Hulbert said in a statement. "Pact’s access to innovative developments in crate design and packaging solutions and its commitment to invest in crate pooling and washing in New Zealand will be of significant benefit to T&G, our growers and our retail customers."
The divestment comes after T&G embarked on a series of acquisitions over recent years, such as Hawke's Bay Apollo Apples, tomato growers Great Lake Tomatoes in the Bay of Plenty, and Rianto in Waikato, which boosted annual revenue by $63.4 million in 2015.
T&G shares, of which BayWa owns about 73%, rose 2% to $2.50 and have gained 17% this year.
