Norway’s Tomra Systems has agreed to a buyout deal of NZ$70m (A$65m) for Kiwi fruit sorting company Compac Holdings.
The 100 per cent acquisition of the Auckland based packhouse automation systems maker by Tomra will see it expand extend its global operations.
The deal is subject to Overseas Investment Office approval and is expected to close in the first quarter of next year.
“Market forces have driven double-digit growth at Compac over recent years, and we have rapidly become a global business from humble New Zealand roots,” Compac chief executive Mike Riley said.
He also added that the merger will see Compac being able to meet the increasing demands for their products and services in a more “scalable and operationally efficient manner”. Executive vice president and head of Tomra sorting Volker Rehrmann explained,
“Compac serves complimentary food sorting markets, which is a very welcome addition to the Tomra sorting food business. We see our customers’ needs evolving and with our complementary solutions and an increased ability to leverage our combined food sorting technologies, we are ready to meet future customer needs.”
Despite the acquisition, Compac’s leadership will stay in place in the new structure, operating as a standalone entity while Tomra will still continue to offer its existing product portfolio.
Tomra has also said it will continue to invest in Compac’s R&D activities as the Norwegian group’s “centre of excellence for lane sorting” worldwide.