Elders buys 11.3 per cent stake in PGG Wrightson, says no current intention to acquire control

The agribusiness giant made an announcement to the ASX yesterday that it had bought an 11.3 per cent stake in PGGW for $35 million.

Like Elders, PGG Wrightson is an agricultural supplies and services business, dealing in livestock, wool, horticulture, water and irrigation, agribusiness, real estate and insurance.

It was formed through the merger of Pyne Gould Guinness and Wrightson, with both companies more than 160 years old, and is the biggest public rural services firm in the country.

PGG Wrightson employs more than 1800 people in 170 locations throughout New Zealand.

Elders was present in New Zealand last century, but sold its finance interests in 1999 and its remaining stake in rural services in 2014.

Speaking at the Elders annual general meeting, held in Adelaide today, Mr Wilton said Elders did not "currently intend to initiate a proposal to acquire control of PGGW", but it did support its diversification strategy.

The stake was acquired by private sale.

Mr Wilton said reinvestment played an important role in Elders growth strategy.

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The company also announced a $25m investment in a world-first automated wool handling business this year, while it also acquired 13 businesses in ten locations with 115 new employees during the course of the 2021/22 financial year.

"The business development pipeline for the coming year is also encouraging, with numerous successful businesses expected to join Elders in the next 12 months and furthering our growth," Mr Wilton said.

"Elders also made considerable investments in the sustainability of the business this year.

"We continue to make progress on our ambitions to be a leader in sustainability for Australian agriculture and an adopter of the best governance of sustainability standards practiced in corporate Australia."