Why has your company expanded? When did you make this decision?
The founders Ian & Rosli Reid together with son’s Nick & Dane, have been focussed these last two years on a drive to become “better” within the existing operation. “Better” being defined by; improving throughput of their existing mills, consulting expert opinion, improving the management teams experience and strengthening the organisational structure. Throughout this a sharp eye has been maintained toward expansion possibilities especially any that provide access to pellets such as this acquisition of Five Star.
Will there be any jobs lost?
No. With best intentions there is no design to reduce jobs involved with this acquisition. It’s business as usual.
How will this change impact your employees? Your customers?
We expect that this expansion will give many of our staff the opportunity for cross-training in pellet manufacturing as opposed to crushed grain mixes. We are very encouraging of exchanging people between our bases in order to cross-pollinate skills and give our team the opportunity to see our wider business.
Our customers, especially those in the South-West of the state are likely to benefit from access to a range of pellet mixes. This will be especially impactful in dairy, sheep, beef and pig markets. Some mineral pelletization may also be possible.
Describe the new owners. Where are they from? What type of work do they do? How long have they been in business?
Ian & Rosli Reid hail from Cronulla Station at Colbinabbin in Central Victoria. A farming and nursing duo, who struck hard times during the high interest rate period of the early 1980’s, and in 1982 took a turn at manufacturing livestock feeds. Hard work, savvy strategy and an ounce of luck has helped them to where they are today.
What are the benefits of this acquisition to your company? What strengths does this new partner bring to the table? How will this change your business model?
We will gain access to an experienced team of pellet operators giving us further versatility with market accessibility, especially within dairy, sheep, beef and pig sectors. Our logistics model will also change with a diversity of locations now providing an attractive proposition to gain cross-regional freight efficiencies. As part of this we are investigating the recruitment of a fleet manager and outsourcing a minority share of our transport to third-party providers.
When will the sale be finalized? How long will the transition take? What will be involved with the transition?
Settlement date is Friday March 05. The operational founders Colin Syme and Heath Campbell will continue to be involved for at least two months following this in a part-time capacity. We anticipate it being a full 12-months for the transition phase to play out.
How much was Five Star sold for?
This is private and confidential information between the owners of Five Star and Reid Stockfeeds.
What do you see as the legacy of Five Star’s founders in the community?
Good, honest, hard-working farmers who saw an opportunity and capitalised on it, in a very similar vein to the owner’s of Reid’s. Colin and Heath have lived up to their word throughout the transaction and been absolute gentlemen to work with. Their business is renowned for supporting many local organisations within their Camperdown and Gunbower regions this is a legacy the Reid’s wish to continue.
What was the reaction of your employees to this news? What about your customers’ reaction? What about your personal reaction?
Overwhelmingly positive across the board. For the owners of both organisation’s the feeling can be summed up in one word – “relief”.
What events do you have in mind over the coming weeks/months to recognise the occasion?
We have deliberately held back Christmas celebrations at our Cobden base to provide an opportunity of bringing both Cobden and Camperdown plants together for a day and/or night of celebration over the coming months.