This article is from the Australian Property Journal archive
NASDAQ-listed Agriculture & Natural Solutions Acquisition Corporation (ANSC) has nabbed Australian Food and Agriculture, taking on its 225,000-hectare portfolio of NSW asset that include the birthplace of Merino sheep in a mammoth $780 million deal.
Australian Food and Agriculture (AFA) announced nearly a year ago that it would be offering itself to the market, including historic Riverina and central-west NSW sheep stations Wanganella and Boonoke, which cover 225,405 hectares over 18 farms near Deniliquin, Hay and Coonamble. That followed the death of Colin Bell, one of its founding directors, in 2022.
The properties have capacity for about 247,000 dry sheep equivalent, a recently expanded 12,000-head feedlot, and 35,200 hectares of dryland and irrigated cropping, which produces irrigated cotton, irrigated rice, wheat, barley, canola, corn, chickpeas, and faba beans.
There is nearly 55,000 megalitres of water entitlements.
ASNC said that characteristics of AFA in line with key themes identified as favourable characteristics of a target upon its own initial public offering last year included “a world class real asset at scale with downside protection through underlying asset value”, decarbonization potential, favourable water assets, upside through operations and optimization, diversification of revenues via the range of products, weather, and decarbonization potential, “premiumization” potential through branding, and renewable energy potential.
Chief executive officer of ANSC, Bert Glover, said, “We have always believed that agriculture—backed by the right sort of capital—could deliver nature and climate solutions.
“ANSC is proud to enter into a business combination with AFA and looks to establish it as a leader in this regenerative transition not just in Australia, but across the world.”
David Leuschen, chairman of the board of directors of ANSC, said, “We view Australia as a leader in the application of new techniques to meaningfully decarbonize agriculture, and we believe that AFA represents a once-in-a-generation chance to combine with a major Australian agricultural company, operating three marquee aggregations including some of Australia’s most iconic properties.”
ANSC is backed by Riverstone Investment Group and Impact Ag Partners. The deal will see the combined company, named Agriculture & Natural Solutions Company Limited (NewCo), potentially listed on the New York Stock Exchange.
Since 2000, Riverstone has raised over $40 billion across the capital structure in all major components of the renewable and conventional energy, power and infrastructure markets, with exposure to over 200 projects in 15 countries.
Impact Ag has over 20 years’ experience managing almost A$1 billion of assets across 19 projects and 500,000 acres in the USA and Australia.
Upon closing, the board of NewCo is expected to be comprised of seven directors including two designated by current AFA shareholders who roll a portion of their ownership into NewCo, David Leuschen, Bert Glover and three independent directors.
AFA can trace its history back to 1861, when George Peppin and his sons first bred the Merino sheep, which is more suitable to the environment. AFA’s genetics underpin the bloodlines of an estimated 95% of Australia’s Merino sheep flock.
Prior to the deal, around two-thirds of AFA is owned by Bell Group Holdings, held by the Bell family and Alastair Provan.
It had tipped the portfolio to the market in 2017, but a buyer could not be found.
