Strategic Partnership Creates Australia’s Largest Independent Food Testing Laboratory

Press Release 16/5/08

It was announced today that AsureQuality Australia Pty Limited’s Melbourne based food laboratory operations has entered into a strategic partnership with Dairy Technical Services Limited (DTS).  The strategic partnership creates the single largest independent food testing laboratory in Australia.
  
DTS Food Laboratories Chief Executive Graeme Richardson and AsureQuality Chief Executive Tony Egan announced the deal together today, highlighting that the partnership makes good business sense.

“The consolidation is a great outcome, it strengthens our alignment with our Australian customers and allows us the opportunity to leverage off the strengths of both previous organisations to create greater efficiency and capability,” said Mr Richardson.

“I’m also delighted that it will provide greater opportunities for our staff, with a combined team of around 200 people now working for the expanded organisation,” said Mr Richardson.

As part of the strategic partnership agreement, AsureQuality will sell part of its Australian business to DTS and in return gain a significant minority shareholding in DTS, joining the likes of Fonterra, Murray Goulburn, Warrnambool Cheese and Butter, and other major Australian dairy companies as shareholders in the company.

The partnership is a significant strategic decision for both DTS and AsureQuality, as both have been looking to expand their presence in the Australian laboratory testing market in recent years. 

When announcing the deal today, Mr Egan said “The strategic partnership will include AsureQuality’s Australian food testing laboratory, and the company’s GMO and allergens operations, but we will continue to seek opportunities to grow in Australia, both in the laboratory business through DTS, and in our related Australian animal health diagnostics, seeds, and assurance services businesses that are not part of this partnership.”

Both Mr Richardson and Mr Egan signalled their intentions to grow the relationship between the two companies following the deal, with the aim of providing a range of testing and assurance services across the primary production value chain that offer a better service to Australian customers.

The new, larger business will trade as DTS Food Laboratories under Mr Richardson as Chief Executive Officer.