Mercer Group Limited (NZX:MGL) is pleased to announce that it has entered
into a conditional agreement to acquire 100% of the shares of Haden &
Custance Limited ("H&C").
H&C is based in Hastings and is recognised as a leader in the automated
preparation of bulk products for downstream processing, with a focus on the
cheese and butter sectors globally. H&C systems are designed by its in-house
team of automation, robotic and mechanical engineering specialists with its
focus on robotic systems that include the following key components:
? 3 Dimensional De-Palletising
? Block tracking and recipe management
? Defect and foreign object detection
? Robotic De-Cartoning
? Robotic De-Bagging
In addition to its head office in the Hawkes Bay, H&C also has offices in
Melbourne and Wisconsin USA.
For further information on H&C see www.hadencustance.com
The conditional purchase price is $2.25m. MGL expects to fund the acquisition
through a placement of new shares or debt.
H&C fits very well with MGL''s stated strategy of investing in food processing
and packaging technologies.
The alignment and market synergy with MGL''s Beta, Aico and Titan lines is
compelling and provides the scale MGL signalled was required to have a
sustainable business. Importantly, H&C has a presence in the US with an
office in Wisconsin - this will assist MGL''s strategy to grow Titan and the
Beta range in that
market. In addition to this strategic rationale, the financial synergy
benefit is forecast to be material and MGL believes that this will provide
the platform for sustainable profitability.
For further information contact:
Richard Rookes, CEO, 021 414 016
End CA:00292352 For:MGL Type:ASSET Time:2016-11-09 11:08:17