Mercer sold to Moraitis

One of Western Australia’s largest fruit and vegetable suppliers, Mercer Mooney, has been sold to Sydney-based Moraitis Fresh for an undisclosed sum.

Under the terms of the sale, which ends more than 90 years of ownership by the Mercer family, current Mercer directors John and Greg Mercer will remain in their management roles after agreeing to a cash and equity deal with Moraitis.

Mercer director Michael Sertorio has accepted a similar deal and will take a seat on the Moraitis board.

Mercer is a third-generation family business that employs 120 people and supplies fruit and vegetables to Coles and Woolworths, as well as smaller players.

Mr Sertorio said it had more than 600 growers suppling it with produce and was the largest market wholesaler at Market City in Canning Vale, the primary wholesale market for WA fruit and vegetables.

He added that the group was also the biggest exporter of stone fruit from WA.

Mr Sertorio said there would be no fundamental change at Mercer despite the takeover.

“The business will remain under the Mercer name and the management will remain the same,” he said.

“What this provides is an opportunity for our growers who can send product to the east coast.”

Mr Sertorio said the company decided to sell the business so that it could be part of a national operation.

Moraitis is one of Australia’s biggest fruit and vegetable suppliers and has a presence in New South Wales, Victoria, Queensland and South Australia.

“Large suppliers are looking for integrated solutions and that’s not just geographic, it’s about adding value like pre-packing products,” Mr Sertorio said.

“We have grown very successfully, especially in the past five years.

“We were looking at what would happen in the industry in the next five to 10 years and what would happen overseas and with our suppliers, and what we needed to thrive in the long term.

“The opportunity was there to join a larger company.”

Moraitis was founded about 50 years ago by Nick Moraitis, the owner of Melbourne Cup winning horse Might & Power.

Mr Moraitis said acquiring Mercer was a “fantastic add-on” for his business, in which his sons, Stephen and Paul, are directors.

“It has opened up the doors in WA,” he said.

Mr Moraitis said the business had been somewhat restricted from growing its market in WA because quarantine rules prohibited certain fruits and vegetables being imported into the state.

Moraitis general manager Nick Drazic said the company was increasing its ownership of produce suppliers and had 18 joint ventures with growers across Australia.

“Supply is king in this game,” he said. “You need to be able to deliver a certain amount at a certain time, and more and more we want to control our own destiny.”