Deal allows European firm to obtain a 70% shareholding in a Queensland sugar producer
Allens has advised Nordzucker AG on its $120m equity and debt investment to obtain a 70% shareholding in Queensland sugar producer Mackay Sugar.
Nordzucker AG is one of Europe's leading sugar producers, while Mackay Sugar is Australia's second largest sugar mill owner, with three operating raw sugar mills, interests in sugar refining through its 25% interest in Sugar Australia Joint Venture, and other interests in cane growing and sugar terminals businesses. The transaction will recapitalise Mackay Sugar and allow it to undertake significant investment in its mills.
The Allens team was led by M&A partner John Hedge, and includes partner and agribusiness sector leader Richard Kriedemann, senior associates Michaela Moore and Ben Smallwood, and associate Luca Masinello. Meanwhile, key specialist support was provided by planning and environment managing associate Gobind Kalsi and employment and safety senior associate John Naughton.
“We were very pleased to advise Nordzucker on this transaction as their first investment outside of Europe and their first investment in the sugar cane industry,” said Hedge. “Agribusiness is a pillar of the Australian economy, a growth sector, and an important part of our firm's practice."