Animal nutrition company SealesWinslow has been sold to Farmlands.
Currently owned by Ballance Agri-Nutrients, the New Zealand company’s board has agreed to the sale pending approval by the Commerce Commission. The regulatory process could take up to four months.
Ballance said it will work closely with the Commerce Commission and Farmlands to ensure that all necessary steps are taken to meet regulatory approval requirements.
“The divestment of SealesWinslow will allow Ballance to focus on its core business, and we will use the sale proceeds to pay down debt,” Ballance CFO Matt Skilton said.
“Farmlands’ interest in acquiring SealesWinslow is a testament to the customer offerings and strategic assets of this business. This is also a great opportunity for the SealesWinslow employees to be part of a larger animal nutrition Group,” Skilton said.
Farmlands CEO, Tanya Houghton says SealesWinslow is a recognised leader in animal nutrition, built on a similar ethos to Farmlands.
“It has a long history, including mergers and growth, aimed at providing the best products and best value to Kiwi farmers.
“We’re excited about the prospect of buying SealesWinslow and supporting it to be an important part of our overall nutrition business.”
The agreement broadens Farmlands’ manufacturing footprint into the North Island and complements their existing South Island infrastructure, resulting in a nationwide animal nutrition solution.
Tanya believes it’s important to look at areas of overlap and duplication in local co-operative ownership where there’s opportunity to develop greater efficiency for New Zealand farmers – particularly in a tough operating environment.
“Farmlands exists to create better outcomes for New Zealand farmer customers and shareholders. In this instance, our focus is specifically around animal nutrition, which is such an important on-farm input, so it’s an area we are very focused on,” she said.
Seales Ltd was established in Morrinsville in 1968. In 2011 Ballance Agri-Nutrients joined forces with Seales Ltd and Winslow Feeds and Nutrition to create a new nationwide business.
The operation, SealesWinslow, was 51% owned by Ballance Agri-Nutrients but two years later it took over full ownership.