-->
Sharechat Logo

Harts snap up Hansells for $15 million

Wednesday 29th August 2018

Text too small?

Billionaire Graeme Hart and his son Harry bought Hansells Food Group for $15 million in their creation of a new local food empire. 

Hansells' management started looking for a buyer in October last year and entered into a sale and purchase agreement on June 1 to sell the assets and liabilities for $15 million, financial statements lodged with the Companies Office show. The Auckland-based company had accumulated losses of $66.5 million by March 31 and was trading with negative equity of $28.4 million. 

The assets held for sale were valued at $39.9 million as at March 31, including $14.1 million of property, plant and equipment, $10.8 million of inventories and $11.4 million in receivables. The firm also came with $26.5 million of liabilities, of which $5.8 million was a loan from Scottish Pacific, $7.4 million was in trade payables, and $5.2 million were from related party payables. Discontinued businesses generated a positive operating cash flow of $2.4 million in the year. 

The food ingredients business was rolled into Water & Wild, an entity set up by the Harts in three separate deals to buy Hubbard Foods and the Gregg's sauce unit. Water & Wild is fronted by Harry Hart, who owns 33 percent of the ultimate parent, and backed by Graeme Hart with 67 percent. 

Hansells has been a perennial underperformer, repeatedly filing accounts tagged by its auditor. The firm saw revenue drop to just $96 million in the March 2018 year from $188 million in 2013.

It reported a loss of $20.3 million in the year ended March 31, compared to a loss of $6.8 million a year earlier. That included an $11.6 million charge writing off its remaining goodwill and $349,000 from the value of its brands, which include Hansells cooking ingredients, Thriftee drink concentrate, WeightWatchers foods, Alfa One rice bran oil, Vitafresh and Vitasport drinks.

Accounts of the Rotorua Energy Charitable Trust, a former 36 percent Hubbards shareholder, show the cereal maker hadn't turned a profit since 2015. The trust wrote down its investment by $5.1 million and fully impaired a $2.3 million loan to the food maker in 2016 and 2017 before selling its stake back to Dick and Diana Hubbard.

The Gregg's sauce assets became available as a required divestment for the Commerce Commission to approve the sale of Cerebos Gregg's to HJ Heinz.

(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 gain; a2 jumps to 12-month high as earnings outperform
NZ dollar drifts lower following early boost from rising dairy prices
Meridian positions for next generation development
Kiwibank lifts first-half net profit 47.6% amid rekindled growth
John Fellet: Came to Sky TV for 18 months, stayed 28 years
Marsden Maritime net profit down on lower cargo through Northport
Countdown supermarkets 1H earnings dip as digital investment continues
Fletcher open to re-entering high rise construction market
Power price spike put margin squeeze on NZ producers in Dec quarter, stats show
Tilt Renewables to raise A$260m of new equity

IRG See IRG research reports