Wednesday 18th September 2013
|Text too small?|
PGG Wrightson, the rural services firm controlled by China's Agria Corp, has agreed to buy water businesses Water Dynamics and Aquaspec from Switzerland's Pentair for an undisclosed sum.
The deal is expected to settle on Oct. 28, and will expand on Wrightson's existing irrigation business, the company said in a statement. The price wasn't disclosed, and it isn't clear when the acquisitions will add to earnings.
"Irrigation has been one of our highest performing units in recent years and we see water management as a key challenge and opportunity in agriculture and horticulture in the foreseeable future," chief executive Mark Dewdney said. "These new businesses are very complementary to our existing irrigation business and add a number of additional strengths to extensively grow our reach across the water management sector."
The Christchurch-based company's irrigation business is part of its AgriServices unit, which reported operating earnings before interest, tax, depreciation and amortisation of $10.8 million in the year ended June 30, on sales of $177.8 million.
Water Dynamics and Aquaspec have 45 staff in Auckland, Hastings, Christchurch and Cromwell, giving Wrightson operations in the North Island.
Wrightson's shares were unchanged at 37 cents yesterday, and have dropped 16 percent this year. The stock is rated an average 'buy' based on four analyst recommendations compiled by Reuters with a median price target of 46 cents.
No comments yet
Wrightson chair John Anderson to retire at October meeting
PGG Wrightson take $321M charge on goodwill, operating earnings drop on drought
PGG Wrightson managing director Gould to step down in August
Senior Aussie PGG Wrightson exec to head Landcorp
PGG Wrightson parent Agria posts wider first-half loss on land use impairments
PGG Wrightson lifts 1H profit by 55 percent on retail, Ag Services, pays 2.2 cent dividend
Wrightson finally gets $25M Crafar Farms loan repaid
PGG Wrightson gets government backing in $14.6M seeds research
PGG Wrightson boss George Gould paid $1.5M in FY 2012
PGG Wrightson returns to profit, auditor tags goodwill assumptions