New Zealand-based T&G Global Limited (T&G) has entered into a conditional sale and purchase agreement for the sale of the major assets of its subsidiary ENZAFoods New Zealand Limited (trading as T&G Foods) to Cedenco Foods New Zealand Limited.
Cedenco will assume control of T&G Foods' processing business, employees and assets in Hastings and the fruit ingredient assets based in Nelson together with the realisable value of existing inventory.
It will also take an assignment of the long-term property lease in Hastings.
T&G’s pipfruit division has agreed a long-term apple supply agreement with Cedenco for processing apples.
The intended settlement date is April 20. In the interim, T&G will continue to operate T&G Foods including the procurement of fruit, the processing and sale of products while retaining its existing employees.
In addition, T&G has today entered into an agreement for the sale of its small format pouch assets in Nelson to NZ Apple Products Limited and will enter into a three-year lease agreement of its Nelson site to NZ Apple Products Limited.
T&G does not expect a material income statement impact to arise from these agreements for the year ended Dec. 31, 2018.
The company is also in discussions regarding T&G Foods' apple juice concentrate facility in Nelson. A further announcement will be made in due course.
T&G chief strategy officer Tim Clarkson says the company is delighted to be working with its new processing partners and to have secured a positive outcome for its employees.
“T&G Foods’ people, products and production facilities will benefit from being owned and operated by Cedenco and NZ Apple Products Limited who are both focused on fruit processing and are willing to invest for the long-term," Clarkson said.
"The New Zealand apple and pear industry needs good fruit processors and T&G is delighted to have such strong local partners to take the business forward."