Tree seedling producer ArborGen has sold its Australia and New Zealand business, with the company eyeing up expansion in its United States and South American business.
Photo: 123rf
The NZX-listed company said it had reached a $22 million agreement with Geyser Limited Partnership.
ArborGen ANZ is an operationally separate and significantly smaller operation than ArborGen's US business, the company said.
ArborGen chairman David Knott Jr. said the sale of the ANZ business would realise value for the "relatively mature" business and provided the company the flexibility to invest.
"While the company continues to consider other options to unlock value for the benefit of all shareholders, the sale of ArborGen ANZ affords ArborGen great strategic and financial flexibility, creating a strong platform for the company to pursue growth opportunities for the benefit of all shareholders, including acquisition opportunities," said Knott Jr.
The company said its core strategy was to grow the sales of its higher margin proprietary advanced products in the United States where there was significant identified potential to grow market share.
The company said it was on track to deliver its highest Mass Control Pollinated sales year in the US this year.