Tauranga's iconic Mr Chips brand is once again New Zealand owned after spending five years across the Tasman.

The potato product processor, established in Tauranga in the early 1980s, has been sold to Pukekohe-based Balle Brothers Group by Melbourne-based Simplot Australia for an undisclosed amount, it was announced today.

Mr Chips has been purchased by Balle Bros Group.

Simplot owned the company, producing about 30,000tonnes of French fries and chips per year, since 2008. Today it has a processing capacity for 80,000tonnes, with about 40 per cent of finished goods sold in Australia.

Mr Chips was floated on the New Zealand share market in 1993 before the sale in 2008.

For Balle Brothers the purchase renews a relationship with Mr Chips dating back to 1981 as a supplier and as a shareholder of the listed company from 1993. It continued to hold a stake after Mr Chips was taken private, exiting in 2010.

"We see potential further out to add additional product lines and pursue further exporting opportunities," says Balle Bros Group managing director Dacey Balle.

He says the move is a positive step for the New Zealand potato industry.

"This purchase is in line with our strong belief in the New Zealand potato industry and our commitment to growing the value created by the industry.”

Simplot paid about $71million for the business amounting to about seven and a half times the earnings before tax, depreciation and amortisation. Mr Chips had a profit of $5m in the March 2008 year on sales of about $57m.

In the year ending September 1, 2012 Simplot Mr Chips had sales of $56million and posted a net loss of about $22million, including a $17.6million impairment to goodwill, according to statements lodged with the Companies Office. It made a loss of $22million a year earlier, on sales of $63.9million.

The Balle Bros Group supplies retail customers in New Zealand and internationally.