Scales Corporation increases investment in Shelby Foods

Scales Corporation has announced a further investment in its subsidiary, Shelby Foods, acquiring a 7.5% holding for $24.4 million.

The company said the decision to increase its investment in Shelby, which is involved in the US pet food ingredient market, was driven by the subsidiary's strong earnings growth and the potential for further expansion.

The transaction will be funded through term debt raised from Scales' bank partners, with settlement scheduled for April 16.

As a result of the investment, Scales has increased its underlying net profit after tax guidance for the 2025 financial year to between $37m and $42m.

However, the guidance for underlying net profit after tax has been reduced to a range of $51.5m to $58.5m.

Scales Corporation is a diversified agribusiness group with operations in New Zealand, Australia, the United States, and Europe.