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Conditional Sale of Largest Portion of Tru-Test Business

Conditional Sale of Largest Portion of Tru-Test Business

Liquidity event for Tru-Test shareholders

 

Auckland-based Tru-Test has entered into a conditional Agreement with Swiss company Datamars SA for the sale and purchase of the largest portion of the current Tru-Test business.

The conditional sale involves the R&D, manufacturing, supply chain, sales, marketing and corporate functions of Tru-Test’s Retail Solutions (primarily Electric Fence, Weighing and EID systems) division, and the Milk Meters business.  These functions account for approximately 85% of current revenues.  The sale also includes the Tru-Test brand and those of its products.

 

Datamars SA operates globally, specialising in tracing and tracking solutions across livestock, pet and textile categories (based on visual and radio frequency identification, including animal ear tags). It has recently acquired New Zealand-based company Simcro, which specialises in animal health delivery systems. Datamars operates in Australia and New Zealand through offices in Auckland and Brisbane (under the Zee Tags brand).

 

If the sale proceeds, the Tru-Test Dairy Solutions division, which has a regional rather than global focus, will operate as a standalone business, reporting to its own Board of Directors. The core elements of the dairy division are Dairy Automation, Milk Cooling and Farm Holding Tanks. These businesses are recovering strongly after the dairy downturn and are expected to show strong growth in the year ending March 2019.

 

Shareholders will be asked to approve the divestment at a Special Meeting in mid-June 2018. To proceed, the deal will require the support of 75% of shareholders and will be subject to Overseas Investment Office (OIO) approval.  Subject to these approvals, settlement is expected to occur in late September 2018. Until then Tru-Test will continue to operate as it does today.

 

Tru-Test Group Chairman John Loughlin says this is a liquidity event for Tru-Test Corporation’s 100 shareholders.

 

“For some years many shareholders, large and small, have pressed the Directors for initiatives that would create more liquidity for their shares and an opportunity to realise value.  Against this background they should find this development very satisfying.”

 

Mr Loughlin said the acquisition and merging will bring together two businesses that have an aligned focus on delivering value to farmer customers.

 

“It enables the creation of a unique global business, offering farmers seamless animal data solutions that integrate ear tag information, EID readers and electronic weighing. This represents an enhanced business model for managing animal performance and productivity.

 

“Both Tru-Test and Datamars SA will benefit from the growth in scale of the integrated business. Key operations in primary and growth markets will be significantly increased and total business revenue will significantly increase for the combined group.”

 

 

For further Information

John Loughlin

Chairman

Tru-Test Corporation

+64 27 542 2405