Saunders take-over

Press, 7 October 1987, Page 37

Saunders take-over

PA Dunedin Pincipals of the Dunedin-based Odenburg Industries have completed the take-over of R. W. Saunders, by acquiring the 28.3 per cent shareholding owned by Brierley Industries. Last week, Saunders shareholders approved the issue of 800,000 shares to the Odenberg directors, Messrs Owen Tailentire, John Brock, and Ralph Odenberg, as part-pay-ment for the sale of Odenburg Industries and its American marketing organisation, Silver Fern Inc. In effect it is a reverse take-over. The trio also received $3,520,000 cash to effect this sale. This money has been used to buy Brierley

out. They have become executive directors of Saunders with that company’s managing director, Mr Euan Knight. Mr Terry Iggo, for Brierley, said that merging the Odenburg and Saunders interests would blend a strong growth export business with a sound domestic and financial base. The executive directors, who had a major investment in the group, were in the appropriate position to add furthur value to R. W. Saunders. Mr Tailentire said: “The production facilities of RWS will provide a stable base to continue the growth required to service the United States market.

Formed in Dunedin in

1981, Odenburg’s New Zealand sales are minimal. Its customers are almost entirely American boutiques and up-market apparel stores. Having established its own manufacturing arm, it has steadily taken over other operations to meet demand, Including the two Hallensteins factories In Dunedin and a co-opera-tive in Waimate. Mr Tailentire said the Saunders take-over would enable Odenberg to continue to meet its export commitments and to look at the New Zealand market too. *

While Saunders has a strong balance sheet, most of its business is in the New Zealand market, and while Odenburg aims at a young and sophisticated market, the Christchurch

company has tended to concentrate on the over30s range. Last week, Mr Brian Perry, the chairman of Saunders, told shareholders the apparel sales were SIIM in 1965, and 511.6 M the last two years. In the same period apparel profits increased only marginally. A merger with Odenberg would not only introduce a younger market but because it exported to the Northern Hemisphere, would spread the workload throughout the year. It was stated that the Odenberg turnover was SI4M last year.

It has budgeted for a net profit of $828,000 this financial year. The latest profit of Saunders was $525,000.