TOMRA acquires New Zealand sorting machine manufacturer COMPAC for NZD 70M

TOMRA Systems ASA, has signed an agreement with the owners of Compac Holding Ltd (Compac) for 100 per cent of the shares in the company. Closing of the transaction is expected to take place during the first quarter of 2017, subject to approval by the New Zealand Overseas Investment Office. TOMRA Sorting Food and Compac – solutions from farm to fork“The food market is large and continuously growing with requirements around food safety and quality becoming increasingly more stringent. Food producers are also consolidating, becoming larger, more sophisticated and more global. As a leading technology supplier into this industry we see clear advantages in mirroring this trend. With the acquisition of Compac, we reinforce TOMRA’s leading position within the food segment and we will be the first player to present an offering to our customers for sorting fresh and processed foods with both lane and bulk sorters.”, says Stefan Ranstrand, TOMRA’s President and CEO. Compac – A leading provider of Lane Sorting within the Fresh Fruit and Vegetable SegmentCompac is a New Zealand-based provider of post-harvest solutions and services to the global fresh produce industry. The company designs, manufactures, sells and services packhouse automation systems that sort fresh produce based on weight, size, shape, colour, surface blemishes and internal quality. Established in 1984, today Compac employs approximately 700 people across locations in New Zealand, Australia, US, China, Latin America, South Africa, Spain and Italy. Compac has a leading position within the sorting of apples, kiwifruit, cherries, avocados and citrus. About 6000 Compac sorting lanes have been sold worldwide in over 40 markets. “Market forces have driven double digit growth at Compac over recent years, and we have rapidly become a global business from humble New Zealand roots. Joining forces with TOMRA will enable us to continue to meet the increasing demands for our products and services in a more scalable and operationally efficient manner”, says Compac CEO Mike Riley. TOMRA Sorting Food – leading sorting solution providerTOMRA Sorting Food designs and manufactures sensor-based sorting machines for the food industry. Over 5,900 systems are installed at food growers, packers and processors worldwide. The company provides high-performance optical sorters, graders, peeling and process analytics systems for nuts and seeds, dried fruits, potato products, fruits, vegetables, meat and seafood. A further strengthening of TOMRA’s offering within Food Sorting segment“Compac serves complimentary food sorting markets, which is a very welcome addition to the TOMRA Sorting food business”, says Executive Vice President and Head of TOMRA Sorting Volker Rehrmann. “We see our customers’ needs evolving and with our complementary solutions and an increased ability to leverage our combined food sorting technologies, we are ready to meet future customer needs.” Stefan Ranstrand adds, “We will strengthen each other’s presence in key markets, as well as consolidate and leverage our global operations. We will continue to invest in Compac’s Auckland-based R&D activities as our centre of excellence for lane sorting for TOMRA worldwide. Compac and TOMRA share common values of customer satisfaction and lasting partnerships. Under the new umbrella, customers will benefit from the shared focus of both companies on food safety, food quality, improved yield and productivity. “ ”The geographical coverage of the combined companies is extensive, and customers will find a one stop shop for sorting, peeling and analytical solutions for a wide variety of food products. The integration of lane sorting and bulk sorting within the fresh and processed food industries is a natural development for many applications and the leadership positions of both TOMRA and Compac will now provide a unique capability in this regard”, commented Senior Vice President and Head of TOMRA Sorting Food Ashley Hunter. Compac’s leadership team will remain active in the new structure and Compac’s customers can rest assured they will deal with the same people in sales and service. TOMRA will continue to offer its existing product portfolio and remain the trusted partner for future growth and optimal customer satisfaction.  “I am very proud of the team at Compac and the reputation we have built for innovation and technology. TOMRA is the world leader in sorting technology with proven performance and a great culture; I am very excited at the opportunity that this will provide Compac to continue to grow and become the undisputed leader in our sector”, commented Hamish Kennedy, Compac Founder and majority shareholder. Transaction detailsAll details about the transaction can be found on the following webcast link: http://presenter.qbrick.com/?pguid=3ee750b5-0053-4910-9bbd-1890dc37694c. Webcast is also available through on our webpage www.tomra.com On our website you can find questions and answers on TOMRA's acquisition of Compac: https://www.tomra.com/en/news-and-media/news/2016/tomra-acquisition-of-compac-q-and-a For any questions please contact our official spokesperson:For TOMRA:Ashley Hunter – Senior VP and Head of TOMRA Sorting Food - +1 916 869 8484  - ashley.hunter@tomra.comBjörn Weyts – Marketing Manager, TOMRA Sorting Food - +32475478201 – bjorn.weyts@tomra.com   For Compac:Mike Riley – CEO, Compac - +64 21 751 539 -  mike.riley@compacsort.comPerry Sansom – VP Marketing, Compac - +64 21 404 040 - perry.sansom@compacsort.com