Sydney, Aug 17, 2006 AEST (ABN Newswire) - New Zealand's largest privately-owned fruit and produce distributor Freshmax is aiming to expand into the Australian market, with the backing of Sydney-based Wolseley Private Equity.
Under an agreement signed with Wolseley, Freshmax will be restructured under an Australian holding company, Freshmax Pty Limited, to build a Trans-Tasman fresh food business and to capitalise on consolidation opportunities in the fragmented Australian fruit and produce distribution market. Freshmax will see its balance sheet substantially expanded to support acquisitions and growth.
Freshmax has three key business activities, domestic supply and distribution, cool chain distribution to Woolworths / Progressive Enterprises New Zealand and export of products to over 50 countries in the world. Current Freshmax shareholders, led by founding shareholder and managing director David Smith, will be joined on the board by representatives of Wolseley Private Equity, which has strong financial links and access to institutional funds.
The new company will be led by Mr Smith and 50 per cent owned by Freshmax management, with Wolseley Private Equity taking 50 per cent. The existing management team will remain in place, and Freshmax will continue to operate from its head office at Mt Wellington, Auckland.
"Woolworths Australia's purchase of New Zealand's Progressive Enterprises Ltd represents a fundamental change in the Australian produce distribution market," says Smith. "When this is set against the existing fragmentation of Australasian wholesale fruit and produce businesses, it gives rise to an opportunity for a company like Freshmax to participate in Australasian consolidation and to deliver integrated Trans-Tasman customer service."
The agreement with Wolseley provides the capital base that Freshmax requires to expand into Australia and offshore and become a major player in the Australasian fruit and produce industry.
"Wolseley is excited about the opportunity to work with Freshmax's outstanding management team," says Peter Hasko, Wolseley's Managing Director. "The Freshmax business is an ideal platform for growth in the region."
"Over the last ten years, Freshmax Group has expanded organically. It now employs over 200 people and achieves sales around AUD$125 million," says Smith. "Wolseley adds financial skills to our capabilities and muscle to our balance sheet which, taken together, will enable Freshmax to grow through acquisition in both New Zealand and Australia.
"This agreement adds Wolseley's financial acumen and access to capital to Freshmax's expertise and networks. Under the new business structure we are now able to rapidly respond to the new challenges and opportunities in the region. Our expansion plan calls for us to grow the business to achieve turnover of AUD$300 million in combined Australia and New Zealand sales over the next two to three years."
Freshmax is the largest privately owned fruit and produce distribution business in New Zealand. Current management acquired the business from Frucor Holdings in 1996. In building its New Zealand operations Freshmax has acquired a number of assets, proven its distribution and track and trace systems, introduced innovative technologies and developed brand identifiers for new products it has brought to market.
About Freshmax Group
Freshmax operates in three primary areas; international trading in fruit and produce; New Zealand supply of fruit and produce; and cool chain distribution and logistics services. The Group operates numerous vertically integrated supply services. It was founded in 1996 when its present management team acquired the business from Frucor Holdings.
About Wolseley Private Equity
Wolseley Private Equity is an independent private equity firm with over $100 million under management. It invests in Australian and New Zealand companies with enterprise values between $20 million and $100 million.
Contact
David Smith, Managing Director, Freshmax Group, 64 9 917 1447, 64 921 920 780
Peter Hasko, Wolseley Private Equity, 02 8815 4200, p.hasko@wolseley.com.au
Ashley Rambukwella, FCR, 02 8264 1004, 0407 231 282, a.rambukwella@fcr.com.au
| ||
|
