Kiwi electric fence maker Gallagher takes full control of European arm

Lisbeth Jacobs, chief executive, Gallagher Group animal management division. Photo / Supplied

Gallagher Group has acquired the Dijkstra family’s controlling shareholding of Gallagher Europe, an agritech business based in the Netherlands.

Hamilton-based Gallagher said that for nearly 50 years the Dijkstra family had led Gallagher Europe, helping to grow the brand across the continent.

The deal, completed on March 31, will bring around 130 people into the global Gallagher Group, it said.

Hamilton-based Gallagher – founded in 1938 on the back of success with electric fences – is a market leader in the animal management and security industries.

Gallagher, a private company, did not disclose the terms of the deal.

However, Gallagher animal management chief executive Lisbeth Jacobs said Gallagher Europe had previously been about 50/50 owned, with the Dijkstra family having a slight majority.

“We can’t really release the exact numbers, but at the moment, the animal management business has two really, strong regions, and that is North America and Australia/New Zealand.

“They are both about equal in size and they make up about about 75% of the whole turnover.

“Adding Europe to that represents another one of those big chunky markets, so it is a sizeable transaction that will add a sizeable increase to our revenue.”

Australia and New Zealand combined is already a big market.

“North America and Europe will be, equally, so it’ll be a tripod between the three,” she said.

Gallagher Europe has offices in the Netherlands, UK and Switzerland, with in-market teams based in France, Belgium, Austria, Germany, Italy, Denmark and Sweden.

It has distribution partnerships in Ireland, Spain, Iceland and Hungary and to every country in Europe.

Gallagher’s New Zealand-based group chief executive officer and executive director, Kahl Betham, said the Dijkstra family had built a strong business over the generations.

“Owning our market distribution is a key part of our strategy, demonstrated through the acquisitions of Gallagher North America and the Australian Animal Management business in 2009 and 2011,” Betham said.

Jacobs said the company had established strong partnerships and made substantial investments in recent years to expand its footprint.

She said the acquisition would allow Gallagher to grow its European business substantially.

“The European market is one where we see significant evolution and opportunity for growth, particularly as it undergoes changes driven by evolving regulations and shifting customer needs,” she said.

The company has a product called eShepherd – a solar-powered, GPS-enabled livestock neckband that allows farmers to draw a “virtual fence” anywhere on their property.

Jacobs said customers were increasingly seeking intelligent, digital solutions to streamline their operations.

Gallagher designs and manufactures its products and solutions from its headquarters in Hamilton.

Its hardware and software enables farmers and ranchers to track, monitor and move animals; check water, fertiliser or fuel levels remotely; and to weigh and monitor animal health and performance.

Jacobs saw opportunities in Spain, the south of France, Poland and in central Europe.

The company is investing in the development of automated pasture measurement and other technology is not purely related to animals, she said.

Gallagher Europe already has about 85% of the electric fence market in Belgium and the Netherlands.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.