T&G Global signs agreement to sell processed foods business to Cedenco

T&G Global (T&G) has signed an agreement to divest its major assets in its subsidiary ENZAFoods New Zealand, which trades as T&G Foods, to Cedenco Foods New Zealand, for an undisclosed amount.

Under the agreement, Cedenco will take control of T&G Foods processing business, its employees and assets in Hastings and the fruit ingredient assets based in Nelson, along with the existing inventory. Cedenco will also take on the assignment of the long-term property lease in Hastings.

T&G’s pipfruit division has also signed a long-term supply agreement with Cedenco for apple processing.

The divestment will be completed on 20 April. Until then, the parent company will continue to operate T&G Foods including the procurement of fruit and the processing and sale of products.

T&G has signed an agreement for the divestment of its small format pouch assets in Nelson to NZ Apple Products.

The company does not expect a material income impact due to these agreements in this year’s financial results.

T&G is in talks for T&G Foods’ apple juice concentrate facility in Nelson and an announcement is likely to be made in due course.

T&G chief strategy officer Tim Clarkson said: “T&G Foods’ people, products and production facilities will benefit from being owned and operated by Cedenco and NZ Apple Products who are both focused on fruit processing and are willing to invest for the long-term. The New Zealand apple and pear industry needs good fruit processors and T&G is delighted to have such strong local partners to take the business forward.”