TOMRA Systems ASA has signed an agreement with the owners of Compac Holding Ltd (Compac) for the purchase of 100% of the company’s shares. Closing of the NZ $70 million transaction is expected to take place during the first quarter of 2017, subject to approval by the New Zealand Overseas Investment Office.
Established in 1984, the New Zealand-based company is a provider of lane sorting equipment used by fruit and vegetable packers and processors around the world. It designs, manufactures, sells and services packing house automation systems that sort produce based on weight, size, shape, color, surface blemishes and internal quality.
Compac currently employs approximately 700 people across locations in New Zealand, Australia, the USA, China, Latin America, South Africa, Spain and Italy. It has a leading position in the apple, kiwifruit, cherry, avocado and citrus and citrus sorting sectors, with about 6,000 Compac sorting lanes sold in over 40 countries.
“Market forces have driven double-digit growth at Compac over recent years, and we have rapidly become a global business from humble New Zealand roots. Joining forces with TOMRA will enable us to continue to meet the increasing demands for our products and services in a more scalable and operationally efficient manner,” said Compac CEO Mike Riley.
TOMRA Sorting Food, a business unit of Asker, Norway-headquartered TOMRA Systems ASA, designs and manufactures sensor-based sorting machines for the food industry. Over 5,900 systems have been installed at the facilities of food growers, packers and processors worldwide.
The company provides high-performance optical sorters, graders, peeling and process analytics systems for a variety of foodstuffs including potato products, fruits, vegetables, meat, seafood, nuts and seeds.
“Compac serves complimentary food sorting markets, which is a very welcome addition to our business”, said Volker Rehrmann, executive vice president and head of TOMRA Sorting. “We see our customers’ needs evolving and with our complementary solutions and an increased ability to leverage our combined food sorting technologies, we are ready to meet them now and in the future.”
President and CEO Stefan Ranstrand added, “We will strengthen each other’s presence in key markets, as well as consolidate and leverage our global operations. We will continue to invest in Compac’s Auckland-based R&D activities as our center of excellence for lane sorting for TOMRA worldwide. Under the new umbrella, customers will benefit from the shared focus of both companies on food safety, food quality, improved yield and productivity.”
“The geographical coverage of the combined companies is extensive, and customers will find a one-stop-shop for sorting, peeling and analytical solutions for a wide variety of food products. The integration of lane sorting and bulk sorting within the fresh and processed food industries is a natural development for many applications, and the leadership positions of both TOMRA and Compac will now provide a unique capability in this regard,” commented Ashley Hunter, senior vice president and head of TOMRA Sorting Food.
