Balle Bros Group managing director, Dacey Balle says that Simplot, which had owned the business since 2008, had been excellent custodians but that the move to local ownership was a positive step for the New Zealand potato industry.
“This purchase is in line with our strong belief in the New Zealand potato industry and our commitment to growing the value created by the industry.
“It’s a great fit with Balle Bros Group as we look to add more processing value, both to our own potato crop, and also to assure the positions of the whole family of committed grower-suppliers from South Auckland, Waikato, Hawkes Bay, Manawatu and Canterbury,” Mr Balle says.
Mr Balle says his company knows the Mr Chips business well, both through being a supplier since 1981, and also as a shareholder from 1993 through to 2010.
“This experience gives us strong confidence in the existing management team headed by Auckland based general manager Alastair McCredden and his loyal, long-serving team of 130 people in Auckland and Christchurch,” Mr Balle says.
“While our current focus is on a smooth transition to new ownership, we see potential further out to add additional product lines and pursue further exporting opportunities. Processing onshore enables us to give portability and stability to fresh produce. Ultimately this creates value opportunities.”
Mr Chips was first established in Tauranga in the early 1980s, floated on the New Zealand share market in 1993 before being taken private by Simplot Australia in 2008.
Today it has processing capacity for 80,000 tonnes of potatoes, with around 40 percent of finished goods exported to Australia.
