Scales Corporation Sells Coldstore Operations for $151.4 Million
Diversified agribusiness Scales Corporation Limited (NZX:SCL) today announced an agreement to sell its coldstorage
businesses, Polarcold Stores Limited and Whakatu Coldstores Limited (which were merged on 1 January 2018 under the
Polarcold brand). The sale, for consideration of $151.4 million, is to Emergent Cold, a global cold chain company that
recently acquired the Swire coldstorage assets in Australia and Vietnam. The transaction is subject only to OIO
Managing Director Andy Borland says “we are proud to have built a market leading position in the New Zealand coldstorage
industry. We were approached by Emergent Cold who see Polarcold as an ideal fit within their broader strategy of
acquiring and developing a global network of cold chain businesses. Under the ownership of Emergent Cold, Polarcold will
be able to offer its customers global cold chain solutions, and its employees an opportunity to be part of a global
Neal Rider, CEO of Emergent Cold says “Scales has built the leading cold storage business in New Zealand through
dedicated service to customers, commitment to employees and the highest quality operations. We are excited to partner
with this outstanding management team – we look forward to supporting the continued growth and expansion of the
business, and its customers, throughout New Zealand and Asia Pacific with Emergent Cold.”
Tim Goodacre, Chairman of Scales Corporation said “as highlighted in our annual results announcements, Scales is
refreshing its strategy, adopting a greater focus on pure agribusinesses that play well to our strengths. We have
identified our strengths as (1) operating fully-vertically integrated agriculture businesses, (2) participating in
businesses with an export focus, and (3) adding value through connections to the China market.
“In addition to being less aligned with our core strengths, the returns (measured as return on capital employed) from
our Storage activities are also lower relative to our other business divisions and broader opportunities available to
“At this stage there is no intention to return capital to shareholders. Rather, the proceeds are intended to be used to
pursue other attractive opportunities in New Zealand agribusiness, both currently and in the future.” Mr Goodacre said.
Scales was advised by Maher & Associates (lead sale advisor) and Anthony Harper (legal).
Emergent Cold was advised by Russell McVeagh (legal) and Grant Thornton (financial).