Australia’s largest softwood sawmill business—AKD—will fully acquire Highland Pine Products from Pentarch Forestry in a deal expected to occur on July 1st. The deal will see AKD buy out Pentarch Forestry’s 50% share of the business it owns in a 50-50% joint venture, including Highland Pine Products’ primary asset, the Oberon sawmill, which processes more than 500,000 cubic metres of plantation-grown sawlogs and products for structural, landscape, and packaging products.
In a statement published on the company website, AKD said that the deal will see the company process nearly 2,000,000 cubic metres of saw log every year and produce over 1,000,000 cubic metres of timber from its Colac, Caboolture, Oberon, Tumit, and Yarram mills.
“The Oberon acquisition is consistent with AKD’s focus on operating high quality, strategically located sawmills, and represents an opportunity to provide an improved supply and product range for customers and the broader timber supply chain,” said Shane Vicary, AKD’s CEO, who said that as a joint venture partner since 2018, AKD is excited to work with the talented team in Oberon and see what opportunities exist on the site and in the region.
“We are looking forward to working directly with the Oberon team as we welcome them to the broader AKD business of over 1000 employees,” Vicary added. “The acquisition enhances our ability to service both existing and new customers, and we look forward to strengthening relationships with suppliers and continuing to provide a positive contribution to the Oberon community”.
According to a media statement, the acquisition is consistent with AKD’s approach to growth, “through a mix of strategic acquisition and capital investment, and further highlights our 70-year commitment to the Australian timber and building industries by investing for the future.”
- For more information, click here to view the full statement from the AKD website.
