Wallace Corporation Limited and Farm Brands Limited yesterday announced the completion of the merger of their respective co-products businesses and operations, to create Wallace Group Limited Partnership. The new multi-million dollar entity will also acquire the assets and business of Dunedin rendering business, Keep It Clean Ltd.
The merger of the two multi-generational co-products businesses aims to optimise its processing capability, including developing higher-value finished products, and establish an expanded casualty cow collection service in the South Island.
Wallace Corporation chairman and managing director Sir James Wallace says: “Wallace Group is a very exciting development for all of us. I am delighted to be able to continue the evolution of our over 80 year old business.”
Hugh Spence, chief executive officer, Farm Brands Ltd says, “Our family has traded rendered products, with the Wallace family, for over 40 years. Wallace Group is a very positive outcome for staff and supplier customers as we’ll be able to deliver even higher levels of operational excellence.”
Wallace Group has appointed Graham Shortland, formerly Wallace Corporation chief executive, to lead the new company which will be headquartered at Wallace Corporation’s Waitoa site.
“Wallace Group is fortunate to combine two businesses both of which have a strong and positive culture around health and safety, learning and continuous improvement,” Shortland says. “Our larger scale also means we’ll be better placed to make investments in science and further innovation to create higher value specialist products.”
Under the terms of the merger, Auckland-based Farm Brands Ltd, owned by Modena Investments (NZ), contributed rendering plants in Timaru and Dunedin and a substantial export trading business based in Auckland focused primarily on protein meals and tallows. The Farm Brands office in Auckland has been retained and will continue to operate the export trading activities under the Farm Brands name.
Wallace Corporation Ltd based in Waitoa contributed its Waitoa industrial site and businesses including the tannery, rendering plant and compost business, a casualty collection centre in Northland, its Feilding operation and Hororata rendering plant. All staff from the respective businesses being merged are being transferred across to Wallace Group employment from the outset.
Farm Brands warehousing and distribution investment in IQI (USA and Holland) was excluded from the merger. Wallace Corporation’s farms, along with their investments in technology companies Aduro Bioploymers and Ligar Polymers and Chilean dairy farming business Manuka, were also excluded from the merger and will remain with Wallace Corporation.
Overseas Investment Office approval was required for the merger, in addition to Commerce Commission approval, as Modena Investments is jointly owned by the Spence Family of Auckland and Italian-based, privately held rendering business, Sapi s.pa.