Queensland Cotton to buy out Twynam Group for $25 million
19 Jan '06
1 min read
Queensland Cotton Holdings has agreed to buy Twynam Group's Collymongle, Warren and Mungindi ginning operations in New South Wales for $25 million.
Queensland Cotton will have exclusive rights to gin and market Twynam's upland cotton for the next five to six years.
Twynam will get incentives of $10 million if certain specified volumes of cotton is delivered to Queensland Cotton during that period.
The company would benefit in having access to 50 percent of the New South Wales cotton crop and process around 260,000 bales per season, said Richard Haire, Chief Executive, Queensland Cotton.
The acquisition will help build market share in cotton growing regions and satisfy needs of international milling customers, enhancing their confidence in Queensland Cotton, he said.
It will also help maintain the premium Australian growers command for their cotton, which is necessary for the future prospects of cotton industry.
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