Seeka buy consolidates kiwifruit packaging

Rationalisation in the Bay of Plenty kiwifruit packing industry is continuing with Seeka acquiring Bridgecool for $13 million.

Seeka - which listed on the NZAX last week - said the purchase was due for settlement on April 1.

Bridgecool packs more than 4.5 million trays of kiwifruit a year and has an increasing avocado-packing business.

Seeka said the purchase of Bridgecool would give it a processing capacity of 25 million trays or about 30 per cent of the industry.

The deal takes Seeka's total assets to more than $90 million.

Seeka managing director Tony de Farias said the company would use bridging finance to fund the deal but was planning an equity-raising programme in the new year.

A full NZX listing was also being considered.

Earlier this month, Seeka said it was taking a 20 per cent cornerstone shareholding in Opotiki Packing and Coolstorage.

That followed moves by Seeka to amalgamate with packers Eleos.

The combined group is expected to gain better commercial terms in all dealings, supply alliances, rationalisation of supply chain costs, and access to post-harvest and corporate support.

- NZPA