$6 billion logistics group, Qube Holdings jumped almost 5% Thursday after it announced it would acquire Newcastle Agri Terminal (NAT) from its existing shareholders CBH, Viterra Australia, Riverina and CTC Terminals.
The acquisition provides Qube with additional geographical diversity and service capability to enhance the company’s ability to provide reliable export logistics solutions.
The deal which is in the order of $90 million will be funded through Qube’s existing undrawn debt facilities and is expected to be completed by September 30, 2021.
NAT’s premium grain handling export infrastructure delivers highly efficient and cost-effective grain loading and rail discharge capabilities. The terminal is positioned to capture export grain from the large northern NSW draw zone, one of the most unique and productive grain-producing regions in the world. The northern NSW region has typically produced an average of approximately 4.8 million tonnes of grain per annum over the last 7-years.
The NAT facility has approximately 60,000 tonnes of silo storage, modern rail receival infrastructure, road discharge facilities and the ability to load out up to 2,000 tonnes per hour.
Qube said there are no immediate changes forecasted for the business, and the initial focus of the combined business will be on ensuring the same high level of service continues for NAT’s valued customers and the new opportunities identified are delivered upon.
Qube Holdings’ Managing Director, Paul Digney, said “The acquisition of NAT will further strengthen Qube Agri export bulk service offering to growers and traders the ability to now ship from Newcastle. The addition of this quality asset to the Qube Agri capability will ensure customers in the Northern draw zone can benefit from an efficient export terminal.”