Sharechat Logo

Rangatira-controlled Hellers buys Australia's Moira Mac for undisclosed sum

Thursday 26th July 2018

Text too small?

Sausage-maker Hellers has continued its foray across the Tasman buying Victoria's Moira Mac Poultry for an undisclosed sum and adding A$40 million of revenue to its income stream. 

Wellington-based Rangatira Investments, which controls Hellers, today said the purchase was part of the smallgoods manufacturer's plans to expand in Australia, where it's already identified an absence of pre-cooked sausages as a "significant opportunity in the largely untapped Australian market". The expansion plans are running alongside Rangatira's own considerations for the investment, with Cameron Partners reviewing the business and Australian media floating the possibility of a sale. 

"Moira Mac’s is a key part of Hellers’ Australian growth strategy providing a platform to build on, that can be scaled up to establish an expanded presence in the Australian market," Rangatira said. "Moira Mac’s has a great culture, a highly experienced and long-serving management team, exciting growth opportunities and through investment in its manufacturing capability, additional capacity for growth."

Hellers employs 600 people and produced 30 million kilograms of meat in the year ended March 31, Rangatira said in its annual report. The meat company's earnings improved in the second half of the year with stricter margin control and a focus on new product development. Rangatira doesn't break out the firm's earnings, but the Australian Financial Review reported Hellers generates annual earnings of $20 million. 

The Wellington investment firm increased its stake in Hellers to 63 percent from 50 percent in late 2015, paying $9.5 million for the extra shares, and valuing the investment at $52.2 million at the time. 

Rangatira recognised a $36.3 million revaluation gain on the Hellers stake after the meat company acquired Gramart Foods. The investment firm didn't split out the value of its Hellers take in the 2018 annual report, although it recognised the value of the meat firm's goodwill at $27.7 million as at March 31.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares rise as optimism over US-China trade deal lingers; Fletcher gains
NZD under pressure against Aussie as investors cheered by easing of trade jitters
PFI properties’ valuation rises 5.5% to $1.32 billion
Broader definition of workplace harm in new govt health & safety strategy
MBIE officials grilled on terms of Westland Milk loan
Trade Me suitor Hellman & Friedman drops out
Hydrogen not a short-term option for Huntly - Genesis
Kiwibank says customers have a dwindling need of physical branches
Buying off the plans driving down KiwiBuild cost to govt: HYEFU
Fiscal policy to slow growth over next five years, despite surpluses

IRG See IRG research reports