Sweden's Beijer Ref seeks clearance to buy Goodfellow family's Realcold

Wednesday 12th August 2015

Global Swedish refrigeration company Beijer Ref AB has applied to the Commerce Commission to buy Realcold, a cooling business ultimately owned by one of New Zealand's richest families, the Goodfellows.

Malmo based Beijer has applied to the competition regulator for approval to purchase the Auckland based commercial refrigeration and air conditioning company, having earlier entered the New Zealand market through the acquisition of Patton, the commission said in a statement. In April, Beiijer Ref bought Patton, which also assembles and distributes refrigeration and air conditioning equipment.

Beijer is required to apply to the commission as the two businesses "potentially overlap in a number of areas, including the importation and wholesale supply of refrigerants, refrigeration components and refrigeration equipment," and their merger might see less competition in the market, the commission said.

The acquisition would see Realcold become New Zealand's largest refrigeration wholesaler, Beijer said in a statement. Realcold's local operations reported turnover of $22 million in the 2014 year, while its Australian operations have an annual turnover of about $24 million, according to the Swedish company's merger application to the commission.

"New Zealand and Australia are interesting growth markets for Beijer Ref," chief executive Per Bertland said. "With these countries' major food exports and growing tourist industry, there is a great need for effective cooling plants. The company has a board portfolio with brands such as Mitsubishi Heavy Industries, Tecumesh, Emerson Copeland and Gree, but the range will be expanded with the help of Beijer Ref's product range."

Realcold is ultimately owned by Amalgamated Dairies, the investment vehicle of the Goodfellows, one of New Zealand's richest families, worth $550 million according to the National Business Review's 2015 Rich List and includes the president of the governing National Party, Peter Goodfellow.

BusinessDesk.co.nz

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