The Australian Financial Review has reported that AAM Investment Group has acquired Allied Timber Products’ softwood sawmill and business located in Bathurst for about $25 million. This latest transaction is yet another addition to its diversified, unlisted investment offerings now valued at $160 million. Source: Australian Financial Review
“AAM will continue to source high quality assets where value can be created through active management and investing capital to promote improved operational efficiencies and sustainable growth,” AAM managing director Garry Edwards said.
AAM’s target is to acquire and develop a portfolio of up to $500 million of diversified agribusiness assets over five years that incorporates assets.
The saw mill sits on six hectares and processes about 92,000 cubic metres of saw logs per annum. It has a development approval to process 210,000 cubic metres.
The mill, developed in 2006 on a greenfield site, has a long-term contract with NSW Forestry.
“Renewable regrowth timber products are an efficient method of long-term carbon capture and storage, production of these products provides positive environmental outcomes, with two-thirds of Australia’s greenhouse gas emissions being captured in timber products, as well as high quality, cost effective, Australian-produced building and fencing products,” Mr Edwards said.
“AAM will continue to invest in sustainability outcomes through investment in additional on-site renewable energy infrastructure”.
Market analysis has indicated there are around six direct competitors owning about 24 mills with a volume capacity larger than 70,000 cubic metres.
