GFW to buy N.I. mills

Press, 19 December 1989, Page 26

GFW to buy N.I. mills

PA Wellington Goodman Fielder Wattie says it will buy the remaining shares of two lower North Island milling businesses, Central Feed Mills and Manawatu Mills, subject to Commerce Commission approval. Because of a High Court decision at the time of the Goodman Fielder/Wattie merger, the actual acquisition cannot take effect until October, 1990. The acquisition will give Goodman Fielder Wattie outright ownership of two feedmills and a flourmill and of the Foxton-based poultry processor, Sandy Lodge. Goodman Fielder Wattie will purchase the shares from Farm Products Tararua, a Pahiatua agricultural company which has recently been absorbed into the newlycreated Tui Milk Company. Manawatu Mills is a major flourmiller servicing businesses in the central and

lower North Island. Central Feed Mills operates mills in Carterton and Levin and is the owner of the poultry processor, Sandy Lodge. Goodman Fielder Wattie’s cereal milling and poultry group managing director, Dr Ross Mitchell, said that the acquisitions were in line with the company’s policy of consolidating its core activities. “Flour and feedmilling and poultry' processing and distribution have been identified as core business activities by Goodman Fielder Wattie and the acquisition of the remaining shares in Central Feed Mills and Manawatu Mills is strategically important,” Dr Mitchell said. Goodman Fielder Wattie did not expect to make any operational changes in the short term at either of the mills or at Sandy Lodge. “It will be business as usual for both our staff, customers, suppliers and growers," Dr Mitchell said.