Fernz expands in Aust., rationalises in N.Z.

Press, 15 July 1985, Page 32

Fernz expands in Aust., rationalises in N.Z.

Fernz Corporation, Ltd, has bought out its Australian subsidiary’s major competitor to create what it says will be the largest supplier to the Australian agricultural chemicals market.

In a separate transaction, Fernz has sold its subsidiary, Chem Industries (NZ), Ltd, to the Auckland-based pharmaceuticals company, Stevens Corporation, Ltd. The sale was for an undisclosed cash sum. Fernz, formerly NZ Farmers Fertilizer Company, said in a statement to the Stock Exchange it had the approval of the Commerce Commission, and that the sale would be completed on July 31. Chemical Industries Kwinana Pty, Ltd, based in Perth; was acquired through Fernz’s Australian subsidiary, Nufarm Chemicals Pty, Ltd, again for an undisclosed cash sum financed by loans raised in Australia.

The Australian Foreign Investment Review Board has approved the acquisition.

Fernz said CIK would trade in the future as Farmco, a division of Nufarm Chemicals.

“The company has been Nufarm’s major competitor, and is a basic manufacturer of agricultural chemicals,” said Fernz. “In addition it has significant presence in the industrial chemical market place. “The acquisition will make Nufarm the largest supplier to the Australian agricultural chemicals market, with sales, on an annual basis of more than SNZI2O million.” Fernz said the investment was consistent with the group’s objectives of increasing its already large involvement in the Australian chemical market.

Stevens Corporation’s chairman, Mr Bruce Butler, said that the Chem purchase was a significant acquisition in Stevens’ manufacturing activities. “Chem and Stevens have operated as pharmaceutical and cosmetic third party contract manufacturers in

the New Zealand market for some years, and the combining of operational resources will provide a comprehensive platform to extend both domestic and offshore markets,” he said in a statement.

The Chem plant met international manufacturing standards, and extended manufacturing facilities would be available to customers. “Stevens has a dominant presence in pharmaceutical distribution in New Zealand and the utilisation of a larger plant offers greater opportunities. Our increasing liaison with Australian organisations is introducing a new range of manufacturing options to Stevens. “The capacity of the Chem plant and its ability to produce both specialised and volume products is an important resource to develop. “With the shift of pharmaceutical and cosmetic products to more consumerrelated selection we will be developing production op-

portunities within the pharmaceutical, cosmetic, toiletry, and selected mass market segments.”

The chairman of Fernz, Mr J. L. B. Stevens, said the company had acquired Chem in February, 1980, after acquisitions of Kempthorne Prosser and Company, Ltd, and Medical Supplies NZ, Ltd.

Kempthorne Prosser’s manufacturing laboratories in Dunedin were closed and a rationalisation of activities saw its plant and machinery transferred to Chem.

But late in 1980 the decision was made to cease trading in pharmaceutical wholesaling and since then Chem has operated as a contract manufacturer of pharmaceuticals and cosmetics for other companies.

“These activities are no longer consistent with the corporate objectives of Fernz Corporation, Ltd,” Mr Stevens said.