A profitable business comprising one of the best known agricultural and horticultural service companies in the South Island and offering further prospects for growth has been put on the market.
On Farm Agri Centre was established in 2005 when Gary and Lisa Reilly took over Dave Milne Farm Services, a long-established business of over 30 years in the region.
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“On Farm Agri Centre is a leading supplier of agricultural equipment and parts for the Nelson, Tasman, and West Coast regions of the South Island,” says Paul Vining of Bayleys Nelson who, with colleague, Dennis Christian, is marketing the business for sale within leased premises, via expressions of interest.
“The business thrives on solving challenging agricultural and horticultural projects, employing nine staff and an owner manager,” Vining says. “It is highly respected in the agricultural sector as a supplier of leading brands through its exclusive and preferred supplier arrangements. These include DeLaval, Bauer, Husqvarna, Kliptank, Roto, C-Dax, Silvan, Masport and Exide.”
Vining says the owner has built the business up over the past 15 years by adhering to a company vision of ‘Your Project, Our Solutions’ and by striving for long-term business partnerships with its clients.
“On Farm Agri Centre’s vision goal has been ‘to provide the right solution to maximise the capital investment owners are making in their farming projects’. The company’s success has been achieved by constantly investing in its people, processes and partnering with only the top quality farming brands.”
Vining says the vendor, who is now looking at other business opportunities, is happy to provide an extended handover period if required to give good support to the purchaser.
Based in Stoke, Nelson, close to key arterial routes, Nelson airport and the Port of Nelson, On Farm Agri Centre operates from leased premises of 680sqm encompassing a showroom, offices, large high roller door workshop and storage areas for stock.
“The 1474sqm site has ample off street parking and good exposure to the main highway,” Vining says. “The incoming purchaser will also have the opportunity to negotiate a suitable long lease with the property owner.”
Christian says On Farm Agri Centre has a solid base of around 100 regular farming clients with opportunities to grow the business further. He says the core business focuses on designing, installing and servicing dairy farm equipment, irrigation and effluent systems; and retailing agricultural tools.
“On Farm Agri Centre supplies and maintains a broad range of systems and specialist farm machinery including milking, water, effluent, storage, cooling, pumping, yard construction, farm data, machinery and small power goods.
“Regular sales are achieved from the weekly supply of milking products through to the installation of new milking sheds and effluent ponds,” Christian says. “The company provides water irrigation and effluent systems from the initial consultancy and design stage through to completion and operation.
“Water use, water meter verification and regulatory requirements are constantly evolving but On Farm Agri Centre’s expertise in irrigation and effluent management, combined with systematic project management and use of leading product brands, enables it to create the most effective solution for each individual client.
“As the Nelson/Tasman Husqvarna dealership, it has the technical and parts capability to ensure clients receive the best in service and reliability. Stocking a large range of chainsaws, mowers and ride-ons the sales and parts team is able to ensure clients are recommended the right machinery required for the job.”
As well as servicing its base of regular farming clients, the business caters to the general public with the sale and servicing of outdoor equipment and supplies.
Christian says a key to the company’s success is its employees, with over 90-plus years of combined experience in the agricultural sector, who are always on hand to cater for sales inquiries on any of the products sold within a diverse range of agricultural equipment.
“The On Farm Agri Centre team is dedicated to providing a complete, integrated after-sales parts and service package to help to improve clients’ productivity, give a better return on their investment and peace of mind through busy work periods.
“With a comprehensive and efficient parts department, any parts that are not in stock can be quickly sourced within New Zealand. The investment in parts and accessories is a vital component of this company’s loyalty to its customers, reflecting its commitment to provide a professional service as quickly and efficiently as possible.”
Vining says On Farm Agri Centre is likely to interest a range of prospective buyers. These include owner operators looking to purchase a business that suits their background skills and complementary agricultural businesses – including those outside the Nelson, Tasman and West Coast regions – which are looking to increase their profitability by expanding their geographic reach and reduce economies of scale through combined back office operations.
“Other possible buyers include passive investors taking a totally analytical approach and looking for a solid, hands-off business that can be run by a suitable manager. Active add-value investors are another group which typically target small to mid-sized opportunities where they can either increase income or redevelop business to add value.
“Then there is always the prospect that this highly successful company will attract an expatriate New Zealander returning from overseas and looking for a good business opportunity.”
Christian says On Farm Agri Centre’s highly trained, qualified and accredited professionals are among its major assets.
“Every farm may have its own unique set of issues - but they all have a common goal - to maximise profit,” he says.
He cites as an example a visit from one sales team member which saved a customer thousands of dollars in compliance costs and investigative works by quickly identifying and providing a solution to a milk contamination issue.
“Also no two irrigation or effluent solutions are the same. In this regard, one of On Farm Agri Centre’s customers needed to ensure their investment in $30,000 plus irrigation pumping machinery would not be washed away in the event of flooding. So, the company’s engineering team designed and built an innovative gantry solution that enabled the 2 tonne irrigation pump to be lifted simply and quickly clear of any flood waters.”
Vining says that, while there is no urgency to sell the business due to its profitability, prospective buyers should register their interest as soon as possible, due to the desirability of the opportunity.
