A business that started as a small rope-works factory in Dunedin in 1876 and grew into farming innovation and manufacturing has been bought by rural supply co-op Farmlands.
Donaghys Agriculture’s rope and cord assets are outside of the deal made for an undisclosed sum, with Farmlands taking on its animal health, agri-chemical and dairy shed products and services.
Dunedin and Christchurch headquarters staff will continue in their roles, with leadership also remaining in place.
Farmlands said Donaghys product lines manufactured in Dunedin would also continue.
The acquisition will have Donaghys joining Farmlands while continuing to independently operate existing manufacturing, product development and distribution.
The transaction includes all the operating business and assets supporting this output.
Donaghys chief executive Jarred (Jed) Marfell will carry on leading the business, reporting under Farmlands chief executive Tanya Houghton.
Mr Marfell said this was a positive next step for Donaghys and the customers supplied by the business for generations.
He said the team would continue to operate in standalone fashion, focusing on supply, service and delivering products which worked on farms.
“For Otago and for Dunedin, the key point is that it’s very much business as usual. Our manufacturing and lab operations in Dunedin remain a really important part of the business — in fact we’re anticipating increasing production through our Dunedin factory and employing more local people to meet demand.”
He said the Dunedin site and Christchurch head office would continue to support the wider operation.
“Farmlands knows this business well and understands the value of the capability we’ve built here over a long time. That includes the expertise of our people, our product development work and the importance of local manufacturing.
“For us, this is about taking what Donaghys already does well and taking it up a notch with the support of a New Zealand farmer-owned co-operative behind us.”
The manufacturing, distribution and export business’ reach would be extended while the company’s way of doing things stayed true to values established over its 150 years, he said.
Farmlands is calling the acquisition a partnership, and said it made the investment to expand farmer access to locally developed products, technical advice and farm services.
Mrs Houghton said acquiring Donaghys would mean Farmlands could invest further in research, innovation and technical development for farmers facing more animal health, productivity and environmental challenges.
“Importantly, it keeps Donaghy’s expertise, product development and manufacturing capability in New Zealand hands, supporting solutions that are designed for our farming systems and our conditions.”
She said the acquisition would secure access to products, advice and support in an increasingly uncertain global environment.
Donaghys chairman Jeremy Silva said the partnership ensured Donaghys’s long-standing contribution to agriculture would continue to grow.
“Partnering with Farmlands allows that legacy to continue, while expanding our ability to develop and deliver the next generation of products and solutions for the sector.”
Mr Silva’s family are among major shareholders in Donaghys Limited.
In 2014 about 30 jobs went on the line at Donaghys’ Dunedin factory as a result of a high dollar and overseas competition.