US-owned cotton business, Auscott, has told the 30-odd staff at its showpiece Gwydir Valley property "Midkin" to expect new owners to take over the 17,300-hectare cropping aggregation and ginning business by next month.
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Although not officially confirmed as the buyer, neighbouring private cropping giant, Australian Food and Fibre, is being quoted in local cotton industry circles as the successful bidder.
Auscott chief executive officer, Ashley Power, said Foreign Investment Review Board approvals were still ongoing, however, he expected the ownership transfer would be in October.
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No sale price has been disclosed, although Mr Powell said the deal was "well within our expectations - we're pleased with the result".
Auscott did not disclosed the price range it was seeking when it called for expressions of interest in August, but industry speculation has valued the prestigious integrated North West NSW portfolio at $300 million-plus.
It was prompted to test the market after run of inquiries from corporate players, which apparently included the AFF group, owned by the Moree-based Robinson family.
AFF was, until almost a year ago, a leading partner with freight identity, Chris Corrigan, in the listed Webster horticulture, broadacre cropping and pastoral business which has land in NSW, Tasmania and South Australia.
It sold its 69m shares to Canada's public service-owned pension fund, PSP Investments, and at the same time bought Webster's North West NSW Bengerang farming assets and the Darling Farms aggregation at Bourke for $132m.
Mr Power said Auscott was not confirming any rumours or making any official comment about who may have acquired "Midkin", ending his company's 40-year association with the Gwydir Valley cotton industry.
"We're very mindful that we've been requested not to disclose more details about the buyer at this point," he said.
"We're both fairly private operations and don't wish to make a big noise about the process."
However, if the sale handover activities were likely to take much longer than a few more weeks to achieve, Auscott may start planting next season's cotton crop before the handover.
"Auscott has been involved in "Midkin" for more than 40 years and would like to express our gratitude to the dedicated staff at "Midkin" and for the relationship with growers as well as the community of the Gwydir," Mr Power said in an official statement.
"Having built up the property and operations over such a long time, it gives us comfort that Midkin including the ginning business is sold as a going concern with ongoing employment for staff".
Not selling out
Auscott, which has other properties and a total of 11 cotton gins in the Gwydir, Namoi, Macquarie and Murrumbidgee valleys, purchased Midkin in 1979, growing the venture with the purchase of adjoining properties South Midkin, Top Box, Cockatoo, Windmill and Watervale.
Mr Power reiterated the company, owned by big US JG Boswell Company, would remain a significant investor in Australia and had no intention of selling its other assets.
"We don't talk much about our strategies, but we have no plans to exit the cotton industry in Australia, and we are looking for opportunities to invest further all the time," he said.
"When they arise, we'll take those opportunities."
AFF, chaired by former doctor, David Robinson, was founded in 2000 and has broadacre cropping and citrus operations.
The story Auscott sells Gwydir Valley cotton gem, 'Midkin' first appeared on Farm Online.
Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
