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.<\/p>\n
Donaghys Agriculture\u2019s 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.<\/p>\n
Dunedin and Christchurch headquarters staff will continue in their roles, with leadership also remaining in place.<\/p>\n
Farmlands said Donaghys product lines manufactured in Dunedin would also continue.<\/p>\n
The acquisition will have Donaghys joining Farmlands while continuing to independently operate existing manufacturing, product development and distribution.<\/p>\n
The transaction includes all the operating business and assets supporting this output.<\/p>\n
Donaghys chief executive Jarred (Jed) Marfell will carry on leading the business, reporting under Farmlands chief executive Tanya Houghton.<\/p>\n
Mr Marfell said this was a positive next step for Donaghys and the customers supplied by the business for generations.<\/p>\n
He said the team would continue to operate in standalone fashion, focusing on supply, service and delivering products which worked on farms.<\/p>\n
“For Otago and for Dunedin, the key point is that it\u2019s very much business as usual. Our manufacturing and lab operations in Dunedin remain a really important part of the business \u2014 in fact we\u2019re anticipating increasing production through our Dunedin factory and employing more local people to meet demand.”<\/p>\n
He said the Dunedin site and Christchurch head office would continue to support the wider operation.<\/p>\n
“Farmlands knows this business well and understands the value of the capability we\u2019ve built here over a long time. That includes the expertise of our people, our product development work and the importance of local manufacturing.<\/p>\n
“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.”<\/p>\n
The manufacturing, distribution and export business\u2019 reach would be extended while the company\u2019s way of doing things stayed true to values established over its 150 years, he said.<\/p>\n
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.<\/p>\n
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.<\/p>\n
“Importantly, it keeps Donaghy\u2019s expertise, product development and manufacturing capability in New Zealand hands, supporting solutions that are designed for our farming systems and our conditions.”<\/p>\n
She said the acquisition would secure access to products, advice and support in an increasingly uncertain global environment.<\/p>\n
Donaghys chairman Jeremy Silva said the partnership ensured Donaghys\u2019s long-standing contribution to agriculture would continue to grow.<\/p>\n
“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.”<\/p>\n
Mr Silva\u2019s family are among major shareholders in Donaghys Limited.<\/p>\n
In 2014 about 30 jobs went on the line at Donaghys\u2019 Dunedin factory as a result of a high dollar and overseas competition.<\/p>\n