The Edendale Nursery in Southland has been bought by biotechnology forestry company ArborGen.
Based in Whakatane, the company has laboratories and nurseries in New Zealand and Australia.
ArborGen started production at the nursery last week and will be responsible for sales in the 2014 season onwards.
The Edendale Nursery, established in 1987, grows seedlings for large corporate forest owners, forest managers, consultants and farm foresters in Southland and Otago.
ArborGen Australasian operations general manager Greg Mann, in a statement, said Edendale had the capacity to produce up to ten million seedlings annually.
"This acquisition now enables ArborGen to supply customers throughout the North and South Islands of New Zealand. We look forward to working with forest owners in Southland and Otago, assisting them to add additional value to their estates, and continuing Edendale's proud tradition in the region.''
ArborGen was specifically sought by the former owners to take over their business to to ensure it continued to grow and thrive, he said.
Ron Hinton who was managing director of Edendale Nursery said he was pleased the business he had worked hard to develop was in capable hands.
The nursery's land will be leased from the current owners with ArborGen holding a land purchase option.
Approval for the transaction has been received from the New Zealand Overseas Investment Office.
ArborGen is the largest supplier of seedlings in New Zealand and sells up to 25 million trees annually - predominantly in the North Island.
It has five production nurseries, two seed orchards, and a manufacturing facility for the production of Radiata Varietal seedlings.
- The Southland Times