NZ's Oldest Manufacturer On The Acquisition Trail

29 September 2005

NZ's Oldest Manufacturer On The Acquisition Trail

Over 130 years after it started manufacturing in Dunedin, agriculture specialist Donaghys Industries has bought animal remedies business Jenkins Biolabs as it gears up for a series of acquisitions.

After a period of strong growth and recent divestments, Donaghys has put together a war chest to acquire agricultural companies with a focus on applied technology and is eyeing a number of Australasian targets.

Donaghys managing director Jeremy Silva says he is delighted to have completed the Jenkins transaction.

“Jenkins Biolabs is a great kiwi company with a national reputation for its pro-biotic, bio-stimulant, and mineral products. These deliver growth and productivity gains for farmers and horticulturalists,” said Mr Silva.

“Many New Zealand farmers already use Jenkins products, so we are going to be able to use our nationwide distribution network to increase sales and drive supply efficiencies.”

Donaghys does not expect the acquisition to result in any redundancies.

“We’re looking to grow the Jenkins business so anticipate taking on more staff, particularly in technical support. All Jenkins 18 staff will transfer to Donaghys which will create one of New Zealand’s largest rural field forces.”

Newly cashed up, Donaghys is repositioning itself as a manufacturer and distributor of agriculture products and premium marine and safety braid. Essentially this represents a “back-to-our-roots” approach by Donaghys, which commenced manufacturing 130 years ago.

“We are currently looking at a number of potential acquisitions in the agriculture sector. The key theme common to all the target companies is the use of technology to maximise growth and end user returns.”

Started in Dunedin in 1876, Donaghys Industries is New Zealand’s oldest rural manufacturer. It has representation in Australia, Europe and North America as well as Auckland, Christchurch, Dunedin and Invercargill.

ENDS

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