Blundstone takes over John Bull

By GREG ANSLEY

CANBERRA - Tasmanian bootmaker Blundstone has taken over Auckland-based rival John Bull from its Australian owner, optics company OPSM, as part of a strategy to survive in an increasingly exposed industry.

The takeover, announced yesterday, will expand Blundstone's production capacity by about one-third, win it a large slice of the New Zealand market and further lift its presence in Australia.

This acquisition recognised the importance of increasing productive capacity as a means to underpin the long-term viability of footwear manufacture in Australasia, said Blundstone's chief executive officer, Tony Stacey.

The rapid evolution of technology, its sophistication and increasingly short life-span dictated that any company which intended to remain viable must grow or face inevitable decline.

Blundstone has an existing plant in Auckland, but it is not expected to be affected by the takeover.

The company said it remained committed to its New Zealand manufacturing base. The takeover would improve job security and provide greater opportunities for career development.

Corporate control of John Bull would move to Tasmania, with operational management remaining in Auckland.

Mr Stacey said John Bull was New Zealand's leading brand of industrial, rural and outdoor footwear, and had a significant presence in Australia.

Increased economies of scale and production strengths would enable Blundstone to increase product choice and produce cost efficiencies, he said.