Arthur Yates poised for further growth

Press, Volume CXIV, Issue 33463, 19 February 1974, Page 9

Arthur Yates poised for further growth

(New Zealand Preis Association? AUCKLAND, February 18. Arthur Yates and Company is completing negotiations with two Wellington firms for take-overs that would give the Auckland company almost complete domination of the seed industry in New Zealand.

The two firms involved are F. Cooper, Ltd, and Webling and Stewart, Ltd, both private companies with valuable expertise in the horticultural industry. By taking over Cooper, Arthur Yates would virtually eliminate competition in the general horticultural market. Cooper, second-largest to Yates, has a complementary busines in farm, vegetable and flower seed growing, and in the supply of pet foods, insecticides an<l sprays. Cooper is also world renowned as a producer of commercial pea and bean seed.

Webling and Stewart, a younger company established in 1952, is of value to Arthur Yates as a major supplier of vegetable seed to market gardeners. It is understood that by taking over these two companies, Arthur Yates would control about 95 pei cent of the commercial and retail seed market ir> New Zealand. At present, the Auckland firm controls close to 80 per cent of the market. If the take-over eventuates, and it is believed that the Cooper bid is only a week away from being completed, Arthur Yates would have only two very much smaller

competitors in the seed industry. They are Frank M. Winstone Merchants, Ltd, with some retail business but mainly involved m the commercial market, and the Star Seeds brand of C. J. Law, Ltd, a retdil packet seed distributor selling mainly through garden centres and florists, both of Auckland. The total seed industry in New Zealand — which includes herbage, crop and packet types sold to farmers, Government agencies, local bodies, sports clubs and market gardeners as well as the general public — is estimated to be worth s3om a year. About 40 per cent of production is exported, with the Common Market regarded in some quarters as an increasingly valuable sales area. An official notification to the Stock Exchange Association earlier this mo’Vh from Arthur Yates said that it proposed tn issue 56.000 100 c ordina r v shares as part consideration to acquire all the capital of a certain unlisted company. It is believed that the remainder of the Yates deal for Cooper will be in cash, with the whole of Webling Stewart take-over comprising cash.