BIG BUSINESS DEAL.

Auckland Star, Volume LX, Issue 83, 9 April 1929, Page 5

BIG BUSINESS DEAL.

BRICK AND PIPE WORKS.

MERGER FURTHER EXTENDED

MORNING SIDE AND KAMO.

£450,000 CONCERN FORMED

A business deal involving £53,000 was completed yesterday when the Amalgamated Brick and Pipe Company, Ltd., purchased the business of the Napier Concrete Company, Limited, at Morningside. For £20,000 a further purchase has been made of the business of the Kanio Brick and Pottery Company, Ltd., including that company's coal mine at Kamo, near Wliangarei. Amalgamated Brick and Pipe Company, Ltd., are now controlling the works lately owned by: — R. O. Clark, Ltd., Hobsonville. Gardener Bros, and Parker, Ltd., New Lvnn. "New Zealand Brick, Tile and Pottery Co., Ltd., New Lynn. Glenburn Fireclay and Pottery Co., Ltd., Avondale. Napier Concrete Company, Ltd., Morningside. - Kanio Brick and Pottery Co., Ltd., Kamo. The total capital sum involved in the operations of the amalgamated company to date is approximately £450,000. The company was formed with a capital of £350,000 £1 shares and £150,000 worth of first mortgage debentures. Mr. Jas. Fletcher is chairman of directors of the amalgamated company.

Reasons Stated.

Mr. Fletcher stated this morning that the reason for tlie amalgamating company absorbing the Napier Concrete Company was the fact that concrete to-day entered very largely into the sphere of storm water drainage and as the Amalgamated Brick and Pipe Company was manufacturing glazed earthenware pipes exclusively the directorate considered that it was advisable to have the two products under the control of one company. Concerning the purchase of the Kamo Brick and Pottery Co., Ltd., Mr. Fletcher said that the whole of the interests in the fire clay works at Kamo were included; also the coal mine, which was in active operation. It was not intended to alter the constitution of the Kamo Company, but a new directorate would be appointed, headed by Mr. C. F. Gardener as chairman, who would control the company under the policy laid down by the directorate of the Amalgamated Brick and Pipe Co., Ltd. "It is the intention of the new Kamo company to specialise mainly in fire clay products, such as tire clay lumps required by the railways, tire backs, boiler linings, and bakers' oven equipment," said Mr. Fletcher. "As a large quantity of fire bricks are needed bv domestic builders, a yard will be opened in Beaumont Street, Auckland, to meet the demands. The location of the raw fire clay and coal on adjoining properties will cause us to bring these specialised works right up to date, and it is anticipated that the coal mine will supply a considerable amount of the requirements of the Auckland works as well as provide supplies for domestic use in Xorth Auckland."

The Napier Company.

Referring to the purchase of the Napier Concrete Co., Mr. Fletcher said that in this case also the constitution of the company would not be in any way changed. Hie directorate would be headed by Mr. Hendy W. Luke, who was the present head. A separate board of directors would be appointed and the policy dictated by the Amalgamated. Brick and Pipe Co. The purchase price of £53,000 was arranged for bv the payment of 12/6 for each £1 share in the company, plus a £1 share in Amalgamated Brick and Pipe Co., Ltd. The capital of tlie company taken over was £3.5.000, so that the method of pavnlent brought the purchase up to £.>3,000.

With the exception of the two companies specified, '.lie remaining properties taken over by the amalgamated company will be operated under one directorate. Jhe .•.mulgamated company is establishing head offices in Queen's Arcade Building in Customs Street, next to the Dilworth Trust Buildings.