PwC advises on sale of Auscott Limited

A rare opportunity to acquire one of Australian agriculture’s largest land, water and infrastructure agribusinesses. This fully integrated operation presents significant scale and diverse earnings across the value chain.

Auscott Limited (“Auscott”) offers significant scale, vertical integration, experienced management and reputation developed over 57 years in the Australian cotton industry.

Based in NSW, the portfolio comprises large vertically integrated cotton production, processing and warehousing assets, with complementary classing and marketing operations.     

The investment opportunity includes an impressive 22,000 hectares of developed irrigation land and more than 143,000 ML of water entitlements. With a presence across three major cotton growing regions (Namoi, Macquarie and Murrumbidgee), the extensive assets are complemented by a strategic ginning network of five advanced gins, capable of processing more than one million bales. In addition, there are two warehousing operations and a classing laboratory all supported by an established domestic and international marketing business.      

Ashley Power, Managing Director and CEO of Auscott said: “Following the successful sale of the Auscott Midkin Aggregation at Moree last year, the interest in Auscott has continued and after much consideration, the parent JG Boswell Company has decided to seek formal expressions of interest for the entire Auscott entity.

“We respect our place within the community and value our relationship with our grower customers. In addition, it is our people that sets Auscott apart. We have the right skills and experience at every point in the value chain with a dedication and passion for excellence that makes Auscott so valuable. We are now looking for an investor that shares these values and to continue the growth of the Company.”

James W Boswell, Chairman and CEO of J G Boswell Company, the owner of Auscott, said: “We have stood together with growers, employees and the community over 57 years to build a cotton industry that is truly world class. Now is the right time for the J G Boswell Company to focus our efforts on opportunities in our core operations in California.”

PwC Australia (PwC) has been mandated as lead financial advisors and is running the open and transparent sale process. First round offers are due on Wednesday, 12th of August 2020 at 4:00pm (AEST).

Investment Highlights:

• Significant scale cotton growing and processing operations that coordinates as one of the few vertically integrated grower-processor-merchant businesses in Australia

• Strategically located ginning and marketing network with strong grower and mill customer relationships and reputation 

• First class ginning, warehouse and classing infrastructure with capacity of over one million bales per season 

• A solid business platform for future expansion.

   

Greg Quinn
Tel +61 425 326 833 
Email greg.quinn@pwc.com  

Paul Fenn
Tel +61 481 321 518
Email paul.fenn@pwc.com