Fexco buys New Zealand firm

KERRY-BASED financial services firm Fexco has bought a majority shareholding in the New Zealand-based group, Federal Pacific for a multi-million euro sum.

The move marks the Kilorglin-headquartered firm’s first foray into the south-Pacific market and marks its return to the money transfer sector, which it exited last February with the €123.1 million sale of its money transfer arm to Western Union.

The consideration for the New Zealand investment is thought to involve a multi-million sum, albeit significantly less than what the sale of its European money transfer operation went for.

Federal Pacific is the local agent for Western Union in the Oceanic/South Pacific region. It employs 154 people, sells through 26 outlets and through another 338 sub-agencies. In all, it undertakes around (€172m) worth of monetary transactions every year.

As well as serving the New Zealand market, Federal Pacific – which has its headquarters based in Auckland – operates in 10 countries in the region including Samoa, East Timor, Tonga and Fiji.

Once the deal is completed, the company will change its name to Fexco Pacific Limited.

A spokesperson for Fexco said that, while this deal may not be major on its own, it marks an interesting and significant bit of business for the company; in that it could mark further expansion.

“We would like to expand the South Pacific business, as there could well be other products that we have in our armoury that could translate well to the local market,” they said.

That sentiment was echoed by Federal Pacific chairman, Alistair Hutchison, who said: “Fexco’s interest and investment has been welcomed by the various Pacific Island governments, who are pleased to encourage Irish investment in this part of the world.”