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”. Completion of the transaction is expected to occur in the fourth quarter of 2018.
Source: AKD Softwoods
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