Neutrog takes first step interstate with buyout
A South Australian fertiliser company has made a major acquisition as it moves to expand interstate.
Biological fertiliser company Neutrog has acquired New South Wales liquid fertiliser manufacturer Rutec in its first interstate expansion.
Based in Tamworth and established in 1972, Rutec is Australia’s longest-running specialist liquid fertiliser manufacturer, producing more than 400 fertilisers for use across agricultural production.
Neutrog’s purchase of the business will become effective July 14, at which time all Rutec staff will remain with the company, which will continue trading under the existing brand.
Neutrog managing director Angus Irwin said Rutec and Neutrog both had “a close affinity with the farming community”.
“They have a real understanding of the needs of Australian farmers, the soils they farm, the crops they grow and the unique pressures they face in an increasingly difficult global market,” Irwin said.
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“By acquiring Rutec, we are complementing our existing work in the biological space with an innovative company that approaches water soluble fertilisers in a similar manner.
“We share a common philosophy of innovation, commercially responsive products and an understanding of the balance needed between physical, chemical and biological to achieve optimum soil health.”
Rutec founder David Miskle said he was stepping down “knowing that the future of Rutec is in very safe and capable hands”.
“Both companies have a proven track record and reputation in product development and innovation,” Miskle said.
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“Our products are compatible with all Neutrog biological fertilisers and together we bring an even stronger capability and offering to our customers.”
While this is Neutrog’s first business acquisition, Irwin said the company would be looking at undertaking more merger and acquisition opportunities in the future.
Juheeben Amin Hada From Neutrog’s R&D team with managing director Angus Irwin. Photo: supplied
Neutrog is on track to hit $22 million in annual revenue this financial year, an increase from $19 million. Exports represent $1.2 million in the company’s annual sales.
The company has also announced the purchase of 500 acres of land at Langhorne Creek, 64km south-east of Adelaide.
Neutrog bought the property from private owners in an expansion of its R&D program.
The company will use the site to measure the impact its products have on plant nutrient uptake, disease inhibition and carbon sequestration.
It comes after Neutrog announced in April this year that it would be building a $3.5 million expansion to its Kanmantoo headquarters to focus on R&D.
Speaking to InDaily at the time, Irwin said the upgrade would give Neutrog “significantly increased scope for standalone and partnership R&D projects”.
In an update on the facility, the company said public consultation has taken place, and that it expects building works to begin later this year.
