Namoi anticipates its facility will process in excess of 170,000 bales of the 2014 cotton crop

Namoi anticipates its facility will process in excess of 170,000 bales of the 2014 cotton crop

Namoi Cotton Co-operative has acquired the remaining 50% interest in the Australian Cotton Ginning Company (ACGC) for an undisclosed sum.

Since 2003, ACGC had been owned in a 50-50 joint-venture agreement between Namoi Cotton and Twynam Cotton Pty Ltd, to manage and operate a cotton ginning facility, servicing growers in the Lachlan and Murrumbidgee valleys.

On completion of the deal, Twynam has committed, for an extended period, to have its seed cotton production from this region ginned at Namoi Cotton's Hillston facility.

"This acquisition provided a clear opportunity for Namoi Cotton to grow and expand our core ginning and cotton seed trading businesses," said Namoi CEO Stuart Boydell. "The Namoi Cotton Board is committed, through this acquisition, in continuing to provide industry leading ginning services and seed marketing alternatives to our loyal cotton grower client base in this region."

The company anticipates its Hillston facility will process in excess of 170,000 bales of the 2014 crop.

The acquisition will be financed through a three-year term debt facility.