Australia and New Zealand’s leading livestock funder, StockCo, has today confirmed plans to sell 30% of StockCo’s Australian operations to Elders.
StockCo Group managing director Marcus Kight, advised he was excited to be formalising what had been a very successful collaboration between StockCo and Elders since 2014. “The close working relationship between Elders and StockCo has resulted in positive outcomes for our mutual clients. The taking of an equity stake in our Australian business will be a great way to align growth ambitions for both companies and for StockCo to secure long term access to Elders’ impressive distribution platform.”
The close working relationship between Elders and StockCo has resulted in positive outcomes for our mutual clients. The taking of an equity stake in our Australian business will be a great way to align growth ambitions for both companies and for StockCo to secure long term access to Elders’ impressive distribution platform.
One of StockCo’s strategic imperatives has been to build a strong and diversified distribution capacity so that StockCo’s livestock funding products were easily accessible to customers throughout all livestock producing regions in Australia.
In this regard StockCo is committed to a multi-channel distribution strategy and currently has diversified distribution via the following:
- a formal distribution agreement with Elders,
- a formal distribution agreement with Ruralco,
- a formal distribution agreement with Sprout Ag,
- arrangements with a number of private and independent livestock agents,
- broker agreements with selected independent agribusiness advisors, and
- a direct to market channel whereby clients can deal directly with StockCo.
Mr Kight confirmed that the purchase of an equity stake in StockCo by Elders would not change StockCo’s multi-channel approach and that StockCo would remain an independent business providing livestock funding options to all Australian livestock producers in a manner that compliments existing banking relationships
About StockCo:
StockCo was formed in 1995 and is Australia and New Zealand’s leading specialist livestock funder. StockCo’s market leading products have become an important funding tool for Australia’s livestock producers. The benefits of StockCo’s livestock funding are:
- Fund up to 100% of the purchase price of livestock for trading, backgrounding and finishing purposes.
- Finance charges are payable at the time of sale of the livestock.
- Security is taken over the livestock funded, leaving existing security arrangements with the client’s bank unaffected.
Facilities are designed to enhance client relationships with their existing banks. This is achieved by assisting clients to generate additional income from their existing asset base, or by increasing the scale of operations, without disrupting existing facilities or security arrangements with the client’s bank.