MEDIA RELEASE
15 November 2005
Fonterra and Foodstuffs Reach Agreement on Sale of Kapiti Fine Foods
Fonterra and Foodstuffs Wellington announced today that they have signed a Heads of Agreement for the sale of Kapiti
Fine Foods.
The agreement is subject to approval from the New Zealand Commerce Commission (NZCC) and completion of the formal due
diligence process.
“The acquisition of Kapiti Fine Foods will further support Fonterra Brands’“Winning through Brands” strategy which
focuses on strong brands that deliver faster growth and better margins,” said Fonterra Brands Managing Director Sanjay
Khosla.
“Under the proposed agreement Fonterra Brands will acquire a range of assets including production sites at Palmerston
North and Paraparaumu. Fonterra Brands will also acquire the rights to supply the Pam’s milk and cream brand in the
lower-North Island. The Kapiti branded cheese and ice cream will provide a strong high-value brand in specialty
segments,” Mr Khosla said.
Foodstuffs Wellington Chairman Brian Drake said Kapiti Fine Foods Limited had been a very good investment, and the Group
had developed the business to the maximum of its natural boundaries.
“Foodstuffs Wellington has taken the business as far as it can, developing the brand and manufacturing capabilities. The
new structure would give the business renewed impetus and opportunities, and, of course, it would remain in New Zealand
ownership.
“Foodstuffs has been absolutely delighted with the development of Kapiti Fine Foods, and the progress and growth it has
achieved.”
Both organisations stressed that at this stage it’s business as usual and too early to speculate on the outcome of the
NZCC application and due diligence processes, which are expected to conclude in the first quarter of next year.
ENDS