Auscott's Midkin Aggregation goes up for sale

Cotton at Midkin. Photo: contributed
Cotton at Midkin. Photo: contributed

Auscott Limited will be selling a part of its cotton empire, with the Gwydir Valley's 'Midkin Aggregation' going on the market.

Touted to potential buyers as an "unprecedented opportunity to acquire one of Australia's largest vertically integrated cropping businesses", Midkin offers a substantial portfolio of land and water assets, complemented by a first-class ginning business.

The irrigation and dryland cropping portfolio includes six properties which Auscott has acquired over the past four decades, made up of a total land area of 17,307 hectares. This includes 12,372 hectares of arable land and 7,647 hectares of fully developed irrigation land, which is underpinned by 42,811 ML general security and 14,824 ML supplementary water entitlements.

The farming assets are complemented by a processing business that can gin more than 200,000 cotton bales a year.

An aerial of the Midkin gin.

An aerial of the Midkin gin.

Midkin is estimated to be worth about $300 million.

In a statement, Auscott CEO and managing director Ashley Power said there has been "intense interest" in the Midkin Aggregation in recent years.

"After much consideration the company has decided to ask for formal expressions of interest," he said.

"The Midkin Aggregation of land and water assets has been built up since 1979 in this tightly held premium cotton growing region and this, combined with vertical integration, makes this offering such a unique opportunity.

"We are proud of our dedicated employees, respect our place within the community and value our relationship with our grower customers. With this in mind, the business is being offered as a going concern."

PwC has been mandated as lead financial advisors and are running the sale process. First round offers are due on Wednesday, September 4.