Moree, Australia: Australian Food & Fibre (AFF) today announces the acquisition of pioneering Australian cotton producer Auscott.
Under the terms of the acquisition, AFF, a longstanding and leading Australian producer of cotton, will acquire 100 per cent of Auscott, including its properties, ginning, warehousing and marketing operations, from US-based owner J.G. Boswell Company.
Auscott was one of the first cotton producers in Australia, having been founded in 1963 by J.G. Boswell Company. Since then, it has grown to become a significant producer, with a dedicated team, large geographic farming footprint as well as sizable post-farmgate capabilities.
Auscott’s operations, which are focused on central New South Wales, are highly complementary to AFF’s operations in the north of the State. The merger of the two companies’ post-farmgate businesses will allow the combined entity to continue offering the highest standard of services and support to external customers. The post-farmgate businesses will be led by current Auscott Chief Executive Officer Ashley Power and managed by his Sydney-based team.
AFF Managing Director Joe Robinson welcomed Auscott’s high-calibre team, which he said shared AFF’s long-standing passion for excellence in cotton production and processing.
“Auscott’s six decades of operations in the sector reflects Australia’s leading position on the global stage in high-quality cotton and the importance of a long horizon for value creation. The combined group will continue to be very supportive of the communities in which it currently operates,” Mr Robinson said.
AFF is a joint venture between the Robinson family and the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers and a long-term investor in Australian agriculture.
“Joining forces with PSP Investments in 2017 created the opportunity for AFF to achieve its potential,” Mr Robinson said. “Our acquisition of Auscott is a great example of the power of combining local industry expertise and knowledge with long-term capital managed by a team dedicated to agriculture.”
PSP Investments Senior Managing Director and Global Head of Natural Resources, Marc Drouin, said: “AFF’s acquisition of Auscott represents a significant milestone, and is the latest in a series of strategic initiatives that the company has launched and delivered on since the inception of our joint venture. We are grateful for and proud of our partnership with the Robinson family in AFF, which is emblematic of PSP’s strategy of teaming up with high-performing and like-minded local operating partners in the agriculture and timber sectors to help them achieve their long-term strategic objectives. We share with our partners a commitment to operational excellence, emphasis on employee health and safety, the sustainable management of the natural resources under our stewardship and being positive contributors to the communities in which we invest.”
All regulatory approvals have been met.
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About Australian Food and Fibre
Australian Food and Fibre (AFF) is an irrigated row cropping company, headquartered in Moree in northern NSW. In 2017, AFF’s owners, the Robinson Family, formed a joint venture with the Public Sector Pension Investment Board (PSP Investments), with the partners expanding operations in northwest NSW. The Robinson family has been involved in the cotton industry for more than 40 years. AFF, led by Managing Director and Chief Executive Officer Joe Robinson, is focused on increasing efficiencies in the industry and pursuing innovative practices.
About PSP Investments
PSP Investments is one of Canada’s largest pension investment managers, with approximately C$169.8 billion of net assets as of March 31, 2020. It manages a diversified global portfolio of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montreal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow PSP Investments on Twitter and LinkedIn.