Gilbert + Tobin advised Twynam Agricultural Group on the $25 million sale of its ginning assets and land holdings to Queensland Cotton Holdings Limited. The sale includes ginning operations at Collymongle, Warren and Mungindi in NSW.
Under the deal, Queensland Cotton has exclusive rights to gin Twynam’s upland cotton crop grown in the ginning zones for the next five to six years, as well as the right to market Twynam’s cotton during that period. If Twynam delivers certain minimum volumes of cotton to Queensland Cotton in that time, incentive payments of up to $10 million will be payable by Queensland Cotton.
Twynam Agricultural Group is a diverse company whose main domestic activities are in the rural industry. It has interests in beef, cattle feed-lotting, wool, rice, cotton, cereals and cotton ginning. Its Colly Cotton business internationally markets some 20 per cent of the Australian cotton crop.
Amanda Hempel, who led the G+T team on the transaction, said the sale of the Twynam Group’s assets was an important step in assisting the Twynam Group to focus on its core strategic activities and allowed Queensland Cotton to acquire significant, strategic market share.