Qube announces $90M acquisition

Qube Holdings has announced a deal worth a total consideration of $90 million.

Qube Holdings through its subsidiaries has entered into a binding agreement to acquire Newcastle Agri Terminal (NAT) from the existing shareholders CBH, Viterra Australia, Riverina and CTC Terminals.

The transaction will reportedly be funded through Qube’s existing undrawn debt facilities.

Total consideration is in the order of $90 million. There are conditions precedent to be satisfied common with a transaction of this nature and subject to these, completion will occur on 30 September 2021.

The acquisition is reported to provide Qube additional geographical diversity and service capability to enhance the company’s ability to provide reliable export logistics solutions.

NAT’s world class, 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 seven years.

“The acquisition of NAT will further strengthen Qube Agri export bulk service offering to growers and traders the ability to now ship from Newcastle,” said Qube Holdings Managing Director, Paul Digney.

“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.

“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.”

There are no immediate changes forecast for the business, and the initial focus of the combined business will be to work with the management team to ensure the same high level of service continues for NAT’s valued customers and the new opportunities identified are delivered upon.

In other news, Qube recently enabled the launch of a Covid-19 vaccination hub at Moorebank Logistics Park.

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