Green Triangle sale likely to bring consolidation
Wednesday 17 Feb 2021The neighbours are all peeping over their fences in Australia’s rich “green triangle” forestry zone, keen to get their hands on a rival’s softwood assets. Up for grabs is forestry investment giant Global Forest Partners LP’s softwood business, Green Triangle Forest Products (GTFP), which is the smallest of the major green triangle forest growers and understood to make about $30 million a year.
There’s consolidation on the cards in Australia’s “green triangle”, which straddles the Victorian and South Australian borders. AFR Boutique Resolute Advisory is handling the auction and it is understood it has developed into a keen process between a couple of GTFP’s neighbours.
In the red corner is OneFortyOne Plantations, an integrated timber company that is majority owned by Australian funds including the Future Fund. OneFortyOne Plantations is one of the biggest growers in the rich green triangle region, which straddles Victoria and South Australia, with 83,000 hectares of productive area. It also owns the Jubilee Highway Sawmill in Mount Gambier, which is supplied by the up for sale GTFP under a long-term agreement.
In the blue corner is New Forests, which is an Australian headquartered forestry investment manager with operations in Australia, New Zealand, the United States and Singapore.
Source: Australian Financial Review
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