Steel & Tube Holdings Ltd has entered into an agreement to acquire the assets of Canterbury-based Aquaduct NZ Ltd and Bosch Irrigation Ltd.
Aquaduct, which went into receivership in April, specialises in large bore long length polyethylene pipe. In 2014 it won an innovation award for its transportable ‘pop-up’ pipe factory – a world first. It also supplied over 80 kms of polyethylene pipe to the Valetta irrigation scheme conversion on the Canterbury Plains.
The proposed Aquaduct acquisition follows that of the Tata stainless steel business in April 2014 and MSL on August 3.
S&T CEO Dave Taylor says: “S&T is New Zealand’s leading steel distributor, providing steel solutions to key projects around the country. In addition S&T is a key supplier of reticulation products and this acquisition will further enhance this capability.
“We see Aquaduct as a great company with an innovative and exciting product offering that complements our core business. Combining the well-established S&T brand and Aquaduct’s innovation will enrich our overall product offering, taking both companies into new and exciting territory.”
The consideration for the acquisition is approximately $8m in cash. The transaction is conditional on normal pre-completion matters and S&T expects completion to occur within the next month.
The acquisition will continue to see Aquaduct operating as a separate entity, its name and branding unchanged.