Deal: Pentarch has acquired the assets and land of Dormit.

Value: Undisclosed.

Area: M&A.

Key players: The Russell Kennedy team was led by principal Rory Maguire, with assistance from principals Emma Dunlevie and Libby Pallot, senior associates Krystal Pellow and Abbey Burns, associate Jaqueline Wilson and special counsel Gina Tresidder.

Deal significance: Dormit is Australia’s largest manufacturer of wooden pallets. Meanwhile, Pentarch operates across Australia and has active log export operations in Tasmania, Western Australia and NSW and wood-chip processing facilities based in Tasmania and NSW.

“This acquisition solidifies Pentarch’s strategic commitment to invest and expand its forestry holdings. It adds to Pentarch’s recently announced agreement to buy Boral Limited’s hardwood and softwood business and compliments the greenfields sawmilling operation Pentarch is developing in Eden, NSW,” a statement from Russell Kennedy explained.

“Dormit operates two sawmills and associated operations located at Dandenong South and Swifts Creek in Victoria, processing hardwood logs primarily for pallet production. Dormit is Australia’s largest manufacturer of wooden pallets, supplying the majority of CHEP Australia’s pallet requirements and Pentarch will continue the supply of wooden pellets to CHEP, cementing Dormit’s 30+ year relationship with the company.”

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Commenting further, Russell Kennedy principal and transaction lead Mr Maguire said: “We were very pleased to assist Pentarch with its strategic acquisition of Dormit and look forward to seeing the continued development of the Group’s end-to-end forestry services offering.”