Agri-tech giant acquires rival fence maker

The country's largest agri-tech company, Tru-Test, announced yesterday the acquisition of electric fence manufacturer PEL Industries and a $10 million capital raising.

Tru-Test is also considering an initial public offering (IPO), although managing director Des Scott said that yesterday's announcements had shifted the possibility from the "front to the middle burner."

The company has appointed Forsyth Barr executive director Don Turkington and former Lion Nathan directors Robin Congreve and Mike Smith to its board - indicating that a public listing is being considered.

Tru-Test, which also makes electric fences but is most known for its milk metering devices, said it was ungeared and hunting for further acquisitions.

It raised the $10 million through the sale of 14 to 15 per cent of the company to ANZ Private Equity, valuing Tru-Test at more than $66 million.

The staff of Tru-Test own 55 to 60 per cent of the company and Rangatira (the former J. R. McKenzie trusts) is another major shareholder.

Mr Scott said that with ANZ Private and Rangatira on board, a float would be well received.

Tru-Test sent a "don't sell" notice to shareholders in December with an IPO in mind, but the PEL events overtook the float process, said Mr Scott.

The agri-business market had consolidated greatly over the past decade and that would continue.

The company already has sales of more than $100 million annually, of which about 80 per cent is exported. Tru-Test employs 450 people worldwide and exports to more than 80 countries.

- NZPA