EastPack seeks investment

EastPack, leading New Zealand kiwifruit post-harvest operator and one of the country’s largest cooperatives, announced its intention to raise NZ$30m to help expand packing capacity,

The investment will be raised via an issue of five-year subordinated notes to New Zealand investors and EastPack has the ability to take oversubscriptions of up to NZ$10m.

 EastPack chief executive Hamish Simson, said the funds will be used to improve processing and packing efficiency.

“Over the next five years, kiwifruit volumes are set to grow significantly with Zespri’s latest five-year outlook seeing an increase in total New Zealand Class 1 supply from 178m to 238m trays in 2026,” said Simson.

“To accommodate this growth in international demand, EastPack will continue to expand its packing capacity to process the additional kiwifruit from our growers. Most of this growth is already planted and on its way.”

Chairman John Loughlin said EastPack has a strong track record of investment, innovation and delivery.

“We have experienced sound financial performance since we were founded in 1980, supported by a grower-owned cooperative structure with predictable and reliable supply,” explained Loughlin.

“Our business model generates strong cashflows that means that we have been comfortable funding most of our growth via bank debt. This issue provides the opportunity to diversify our funding sources further, adding resilience to our balance sheet. Shares in EastPack can only be owned by growers but this issue provides all New Zealanders the opportunity to invest in the long-term growth of the country’s number one horticultural export.”

Lead underwriter and specialist primary sector investment company MyFarm Investments has underwritten NZ$15m of the capital raising.