Scales Corporation Limited (SCL) it to sell its bulk liquid storage business, Liqueo Bulk Storage Limited (Liqueo) for $20m to a company related to the SBT Group, a Taranaki based Group with interests in rendering and animal by-products.
Managing Director Andy Borland said: “We are proud to have built a well-regarded bulk liquid storage business. Liqueo has operations in the Hawke’s Bay and Timaru, where it principally stores tallow, a by-product from animal processing. In recent years, Liqueo has enjoyed strong growth with a new long-term edible oil storage contract in Timaru. Whilst Liqueo has grown well in recent periods, the operation remains sub-scale in the context of the Scales Group, especially following the sale of Polarcold. The sale to the SBT Group enables Liqueo to participate in a vertically integrated animal by-products operation.”
Tim Goodacre, Chairman of Scales Corporation said: “The sale of Liqueo represents the final phase in our current portfolio rebalancing of businesses considered to be less aligned with our refreshed strategy.
“Our refreshed strategy is about adopting a greater focus on pure agri-businesses that play well to our strengths. We have identified our strengths as (1) operating fully-vertically integrated agriculture businesses, (2) participating in businesses with an export focus, and (3) adding value through connections to the China market.”
For more information, visit: www.scalescorporation.co.nz
20th August 2018