Local pet food maker and exporter ZiwiPeak has been sold to a Chinese investment fund.
Photo: PIXABAY
FountainVest Partners will buy ZiwiPeak for an undisclosed price and provide it with funds for future growth.
Ziwi Managing Director Richard Lawrence said the company would gain capital to expand its market knowledge and sales, while maintaining high-quality standards.
"During the course of our discussions it became clear that Ziwi and FountainVest share similar core values of teamwork, integrity and entrepreneurship, which are fundamental to any successful business partnership."
A price approaching $1.5 billion has been speculated on.
Bidding for the company was said to be keen with several private equity funds, and global food group Nestle, all said to be interested in ZiwiPeak, which has sales of about $50 million a year.
The company was founded in 2002 by a Mount Maunganui based deer farmer, Peter Mitchell, and produces top of the range air-dried dog and cat food in a factory in the seaside town. It is working on a new factory near Napier to replace the current plant.
Lawrence said business would continue as usual for Ziwi staff, with the current management team running the business, and executive management reinvesting back into the business.
He said production would also stay in New Zealand and it expected over time increased demand for ingredients from its local suppliers.
ZiwiPeak's biggest shareholder is Mark Stewart, a former director of healthcare supplies and animal products company Ebos.
Pet food has become a major retail sector around the world, worth close to $150b a year and expected to grow at 4 percent a year, according to the Statista research company.
The NZ Petfood Manufacturers' Association has estimated the local sales at close to $500n.
It's attracted major food companies including Nestle, which owns the Purina brand, and Mars.
KKR bought the Christchurch based Natural Pet Food company in May for an undisclosed price.
Horticulture company Scales Corporation reported strong growth for its petfood operations in the past year.