News - Media
AKD to acquire NSW sawmills
25 July 2018
WEDNESDAY, 25th JULY, 2018
AKD SOFTWOODS TO ACQUIRE CARTER HOLT HARVEY’S NSW SAWMILLING BUSINESS
Integrated Australian forestry and timber processing company, Associated Kiln Driers (AKD) is pleased to confirm that it has signed an agreement with Carter Holt Harvey (CHH) to acquire all of the shares of Carter Holt Harvey Timber Pty Ltd (CHHT). CHHT owns CHH’s New South Wales sawmilling business. The major assets of the business comprise the Tumut sawmill and Gilmore treatment facility in Tumut, a 50% interest in the Highland Pine Products (HPP) joint venture in Oberon and a distribution centre in Berkeley Vale.
The Tumut sawmill processes approximately 565,000 m3 of sawlogs and produces a range of predominantly structural products primarily for supply in NSW. The Gilmore treatment facility is a value adding site located in close proximity to the Tumut sawmill. HPP processes approximately 600,000 m3 of sawlog, producing a range of timber products.
AKD currently processes over 1,000,000 m3 of sawlog across its Colac, Caboolture and Yarram sawmills and has over 600 employees.
Commenting on the proposed acquisition, AKD’s Chief Executive Officer, Shane Vicary said, “the acquisition represents an excellent fit with AKD’s existing operations in Victoria and Queensland and is consistent with AKD’s strategy of operating high quality, well-located sawmills.
We are very enthusiastic about the acquisition and look forward to working with the existing CHHT employees and providing all AKD employees with enhanced opportunities across the wider AKD group as a result of this transaction.
The acquisition enhances our ability to efficiently service both existing and new customers and we look forward to building strong relationships with all suppliers to the NSW operations.”
The proposed acquisition continues AKD’s approach of growth through strategic acquisition and capital investment and further highlights AKD’s propensity to invest in the industry over the long term.
Completion of the transaction is expected to occur in the fourth quarter of 2018.
AKD was advised by Gresham Partners and Norton Rose Fulbright.
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David McGinness, Risk Officer
Ph. 03 5231 9100