Holdcorp merger

Press, 27 July 1988, Page 34

Holdcorp merger

Holdcorp Group is to merge its two valve operations into a single company. The new company, New Zealand Valve Company, will be 100 per cent owned by Holdcorp, employ 60 people and have assets of $5.87 million. It will be formed by merging the New Zealand Valve Company with F. and W. Fowler. Holdcorp has reached agreement to acquire for cash the 40 per cent in F. and W. Fowler it does not already own, and the 30 per cent in New Zealand Valve Company. The managing director of Holdcorp, Mr Sandy Stirling, said the new company will be a specialist valve manufactur-

ing and marketing operation, with its major markets in New Zealand and Australia. “In the deregulated environment, the valve industry is facing a radical new future with the emergence of additional competition from overseas companies setting up here and high volumes of cheap imports,” he said. Exports, which account for 50 per cent of the companies’ production, will continue to play a vital part in the success of the merged company, he said. “The improving exchange rate means that New Zealand Valve anticipates being able to enhance exports -levels,” Mr Stirling said.