The sale of its Polarcold business to United States firm Emergent Cold will be settled in the next few days after being approved by the Overseas Investment Office.
Directors will then update the market on its earnings guidance for the December 31 year, Scales chairman Tim Goodacre said. That should happen before May 17.
The $151.4m sale was announced in early May last year and the parties have been waiting a year for OIO clearance.
Managing director Andy Borland said the process took longer than they expected but the structure of the deal, with Polarcold earnings since June accruing to Emergent Cold, which then paid interest on the purchase price to Scales, means there is no advantage or disadvantage to anyone.
“It just meant we could not go for anything big while we were waiting. We’ve been looking throughout but there’s nothing ready to go and we’ll be patient.”
Borland said the group will pay down about $40m in seasonal debt but retain its core debt, which is at modest levels with the interest costs covered several times by earnings.
Since signing the Polarcold deal Scales has spent about $34m buying a 60% stake in US pet food business Shelby, sold its bulk-liquid storage business Liqueo for $20m and raised $15m from the sale of 50% of its own NZ pet food business Meateor to Alliance.
Taking all these sums into account and adding accrued earnings should provide a cash fund of about $150m in the next five to six months, he said.
The search for acquisitions will focus on New Zealand but the group would be happy to support Shelby initiatives in the US and will look at Australia as well.
Agribusiness, export and a China focus are the leading criteria.
