AgResearch to acquire textiles research firm Canesis
29 Sep '06
2 min read
AgResearch Limited announced that its shareholding Ministers and satisfactory due diligence, it would purchase the assets of Canesis Network Ltd.
Over the past three months AgResearch has undertaken a process of seeking information from the shareholders of Canesis Network Ltd with the view to acquiring it.
Canesis, based at Lincoln near Christchurch, is an R&D company focused on fibrous proteins, biopolymers and innovative textiles, and is owned (74.9 per cent) by Wool Equities Ltd (WEL) and (25.1 per cent) by the Wool Research Organisation of New Zealand Trust (WRONZ).
AgResearch CEO Dr Andrew West said during the period of WEL and WRONZ ownership Canesis had divested Wool Interiors and other non-core capabilities, and had focused back on its core science and technology business.
“We wanted to acquire Canesis because its business is now so complementary to what AgResearch already does. We will combine AgResearch's on-farm knowledge of sheep with Canesis Network's off-farm knowledge of wool processing and products.
“Having looked closely at the company we found a degree of synergy that warranted the acquisition,” said Dr West.
WEL Chairman Richard Bentley said the purchase preserved the important relationship between Canesis and WEL subsidiary Keratec, which is “very important for WEL”.
“AgResearch will be a good long-term owner as it has a great deal of knowledge in regard to pastoral sector R&D and possesses significant commercialisation expertise.”
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