MHM Automation acquired 100% of the shares of prominent post-harvest vegetable and fruit handling equipment manufacturer Wyma Engineering (NZ) Limited yesterday. The transaction is valued at up to $60 million.
It’s a move NZX-listed MHM Automation predicts will almost double the size of its business, with proforma annual revenue estimated to increase from $67.7 million in the 2022 financial year to $125 million and EBITDA expected to more than treble to over $15 million.
MHM Automation Chief Executive Officer Richard Rookes describes it as a pivotal transaction for the company. “18 months ago, we set a strategic goal to increase our annual revenue to $100 million, with a focus on gaining scale and further diversification. This acquisition effectively achieves that goal,” he said.
Discussions have been ongoing for a two-year period, as the two Christchurch-based companies understood the value of merging the businesses together to provide more scale, cross selling opportunities and operational synergies.
Mr Rookes commented Wyma was a natural fit with MHM Automation strategically, operationally and culturally. “Wyma increases the diversification of our business, by gaining exposure to post-harvest vegetable and fruit handling markets, and has an established footprint in Europe, which is a market that MHM is actively growing in our existing business."
“We are really excited about the opportunity to merge together two Christchurch based agri-tech, export focused businesses as we continue to grow and evolve” Mr Rookes said.
Wyma Managing Director Andrew Barclay agreed and said it was a move that would benefit both parties as MHM Automation was a globally respected company with excellent growth prospects.
“The sale of Wyma to MHM effectively ensures the continuity of our product and service offering, whilst also offering our customers access to additional technologies and capability that could benefit their business. It also provides our employees further professional scope, which is important as we look to develop our people” Mr Barclay said.
Wyma’s 170 employees will be retained as its business operations are merged with MHM Automation in the coming months. Mr Barclay will join the MHM Automation board of directors and will own over 20% of MHM.
For more information:
Richard Rookes
MHM Automation
Tel.: +64 21 414 016
r.rookes@mhmautomation.com