Boral Limited has entered into an agreement with Allied Natural Wood Enterprises Pty Limited (Pentarch Group) to sell its Australian hardwood and softwood timber business for $64.5 million. Source: Timberbiz
The purchase includes Boral’s nine sawmills in NSW, making Pentarch the largest hardwood processor in NSW’s $7 billion forestproducts industry.
“It’s an exciting time for the forest industry in NSW especially as Pentarch is focused on innovating technologies to optimise the use of Australia’s high-value native forest resource,” Australian Forest Products Association NSW CEO Sue Grau said.
“Pentarch will be part of the sustainable hardwood timber industry continuing to provide product for Sydney’s floors, decking and stairs and vital softwood for housing frames,” she said.
“With the purchase including Boral’s half share of the Highland Pine sawmill at Oberon, Pentarch will be operating in both the softwood and hardwood sectors. This will contribute to developing a united and strong industry voice.
“The current pandemic has highlighted the need to secure future timber supplies in the state and AFPA NSW will continue to support businesses like Pentarch in both the development and innovation of the industry.
“It’s great to have some good news in these challenging times for many in the forest products industry and beyond,” Ms Grau said.
The divestment of the timber business, which is expected to be completed in 2021, is in line with Boral’s strategy of resetting its portfolio of assets, positioning Boral to build a stronger core business that delivers improved results. Completion of the transaction is subject to customary pre-closing conditions.
“The sale of Boral’s Timber business represents another important milestone in focusing our portfolio and positioning for the future,” Boral’s CEO & Managing Director, Zlatko Todorcevski, said:
“In Australia, our focus is on our leading integrated construction materials business and maturing our adjacent growth strategies such as recycling, waste, supplementary cementitious materials and lower carbon products.
“The sale of Boral’s timber business to the Pentarch Group, a private company with growing interests in the forest products sector, is a good outcome for this business and its customers,” he said.
“Boral has owned and operated the timber business for many decades and I want to take this opportunity to formally recognise the enormous contribution employees and management have made over the years to the wider Boral group.”