Elders Ltd (ASX: ELD) confirms that Jumbuck Pastoral and Consolidated Pastoral Company (CPC) have entered into a sale and purchase agreement in relation to Rawlinna Station.
The agreement is conditional upon CPC receiving Foreign Investment Review Board (FIRB) approval for the acquisition of the station, and the customary Western Australia government approval to the transfer of the pastoral lease. The sale is otherwise unconditional.
Rawlinna has been sold on a going concern “walk in walk” out basis, including the sheep flock. All current employees will be offered ongoing roles with CPC.
No sale price will be disclosed.
Comments on the sale:
“The sale process drew significant interest from the market, including large sheep production enterprises from both the east and west coast, new entrants and international investors. It was excellent to see the confidence in the industry.”
- Tom Russo, Elders Executive General Manager, Network.
Mr Jock MacLachlan, Jumbuck Pastoral, said “Rawlinna Station occupies an important space in our family’s history. We are delighted that it will be passed to a custodian the caliber of CPC, with a strong record of sustained investment in our industry and whose owner takes a multi-generational view. We look forward to seeing CPC invest in the next stage of Rawlinna’s development and the career opportunities that will be provided to the Rawlinna management team.”
Mr Troy Seter, CEO of CPC said:
“We are excited with the acquisition of Rawlinna that will see CPC return to large scale sheep and wool production. Our owners, the Hands family, have held significant sheep production properties in the UK and we believe now is a good time to invest in Australia’s sheep and wool industry. Rawlinna represents an opportunity for us to reenter the Australian sheep production space at scale and accelerate our ambition of building out a quality diversified portfolio by both geography and production type. We now have assets in catle, goat, sheep and wool production, natural capital and over 20,000 hectares of cropping capacity.”
“We have no intention of converting Rawlinna away from sheep production. We will aim to build on the legacy of Jumbuck Pastoral by further developing Rawlinna to increase its sheep and wool production capacity in the years to come”.
About Jumbuck and Rawlinna
Jumbuck Pastoral is one of the largest livestock production enterprises in Australia. Established in 1888, it is a family owned company with vast land holdings throughout the country.
In the mid 1950s Mr Hugh MacLachlan was travelling from South Australia to Perth on the Indian Pacific when the train stopped at a remote siding called Rawlinna. He observed that the siding had good quality underground water and, being an established pastoralist, he could see the miles and miles of open saltbush, bluebush and grass plains. What most people saw as they traversed the Nullarbor on the Indian Pacific was not what Mr MacLachlan saw. He saw a vast blank canvass and the opportunity to design the country’s most efficient sheep station.
Mr Hugh MacLachlan first placed a survey peg in the ground during the 1960s and through meticulous planning and substantial investment, Rawlinna Station was established. It is now the largest sheep station in Australia, occupying 1,046,323 hectares and is widely regarded as an excellent example of planning and land management.
The property features a renowned boundary exclusion fence that spans some 400 kms in length.
Jumbuck Pastoral will continue to own a substantial portfolio of sheep and catle stations throughout Australia. Jumbuck intends to retain and grow that portfolio into the future and will remain one of the largest catle and sheep producers in Australia.
“The portfolio of agricultural assets that has been acquired by Jumbuck over many years of sustained investment is truly extraordinary”, said Mr Russo. “Whilst the divestment of Rawlinna constitutes a significant sale, in the context of their overall portfolio, this is merely a refinement to beter align the asset base with Jumbuck’s strategy moving into the future. Jumbuck’s intention is to continue to invest in the improvement and growth of their proudly Australian family owned agricultural enterprise”.
About Consolidated Pastoral Company
CPC has an equally long history in Australian agriculture, dating back to 1879. In October 2020, the UK based Hands Family Office purchased 100per cent of CPC. Since then, CPC has continued to grow its portfolio, overseen by its Australian and Indonesian management team headed by CEO Troy Seter.
CPC owns and operates a portfolio of nine station aggregations in Australia and two feedlots in Indonesia. Across more than 3.2m hectares of land, the CPC team can care for more than 300,000 head of catle, 45,000 goats and produce a diverse range of crops. With an asset base in excess of AUD$1.2 billion, CPC supplies a variety of domestic and international customers.
CPC owns the iconic Isis Downs Station that was one of Australia’s largest sheep stations and today runs 31,000 catle and 45,000 goats.