PGG Wrightson Limited (PGW), the New Zealand based leading provider of agricultural products, has apparently revealed in its recent announcement to have sold its seeds division to DLF Seeds for NZ$ 421 million. As per reliable sources, the transaction is subject to standard completion adjustments and obtaining a favorable binding verdict from Inland Revenue.
According to reports, DLF Seeds, the Danish seeds group, is set to acquire all the operations and assets of the PGW Seed and Grain business in New Zealand, South America, Australia, and at all the other international locations. Sources familiar with the development claim that DLF Seeds would further assume or repay the net debt of PGW Seeds which is around NZ$ 18 million as of 30 June 2018.
Speaking on the latest sell-off, Chief Executive of PGW, Ian Glasson was quoted stating that the seeds division of the firm has garnered an excellent recognition across all the seeds markets. He further commented that the company looks forward to concluding the deal successfully and witnessing the benefits that can be derived from the combined PGW Seeds and DLF Seeds’ intellectual property and operations.
The transaction allows for an ongoing working relationship between PGW and PGW Seeds, cite sources. PGW would reportedly continue to provide an assortment of back office services and corporate functions to PGW Seeds for a provisional period of 12 to 18 months. Both the firms would further sign a long-term distribution contract for seed and grain offerings.
Commenting on the firm’s latest purchase, Chief Executive of DLF Seeds, Truels Damsgaard was quoted stating that the company has always viewed PGW Seeds as a complementary and strategic business to its own operations. The deal presents an impressive opportunity for the company to create value and offer a robust product portfolio for its customers, Damsgaard elaborated.