The fund, launched in September, aims to improve health and safety, while also providing a strong investment return that reduces levies for accident cover. Details on the first investment are scarce; a statement from ACC only notes the investments are in the target range of $2m to $15m.
However, Yamaha Motors paid approximately $12m to buy a 14.6% stake in Robotics Plus in 2018.
George Adams, a consultant advising ACC on the impact fund, says there had been hundreds of applications from companies hoping to secure investment, although many were in the early stage and not suitable for a growth capital fund.
“When you are in private equity, you kiss a lot of frogs until you find the right one, but this one we are very pleased with,” Adams said.
Robotics Plus’ initial projects were in fruit picking and packing, but the firm has recently designed technology to prevent forestry, agriculture and transport injuries.
This includes a “robotic scaling machine” that can measure the volume of timber on logging trucks, eliminating what is a dangerous manual task at ports, forestry sites and sawmills.
The first machine was installed at the Port of Tauranga, two have been installed in Napier and three more in Gisborne.
Logs are New Zealand’s third-biggest export, worth $4.5 billion in 2020. But log handling is also a major cause of workplace injuries, with some 17,000 active claims costing $75m last year, ACC data shows.
“What helped ACC with this particular impact fund investment is we are seen as a strategic partner for someone who is interested in a product that delivers a health, safety or wellbeing benefit,” he said.
“We are flush with information and data, and that sort of thing can be very helpful for an organisation looking to invest on that front.”
Robotics Plus co-founder and chief executive Steve Saunders says ACC was welcome as an investor and as a strategic partner.
“The investment will help us accelerate the development of our advanced technologies that help solve complex global problems, including robotic log scaling technology, as we scale up rapidly and enter new markets internationally while providing solutions domestically,” Saunders said.
–BusinessDesk
