NACC manager Patrick Underwood will now have an equity stake in the business following its sale from Elders.

Elders has confirmed this morning that it has completed the sale of its live export logistics business the North Australian Cattle Company.

The buyer is a partnership between Australian and Chinese owned, and Hong Kong-based, Zhoushan Fanda Australian Cattle Industrial Co Ltd (“Fanda”) and the current management of NACC, with existing manager Patrick Underwood to be the director of, and also an equity partner in, the new business.

“The investment in the business by current live export management and Fanda will ensure continuity, experience and an understanding of the long term relationships that NACC and Elders have built over the past 14 years,” Elders chief executive officer Mark Allison said.

“This divestment will allow Elders to focus on its area of expertise, which in this case is to provide our producer clients with a range of marketing options for their livestock.”

Elders announced on 12 September 2016, following a full review of its live export business, that it would undertake a managed exit of its live export logistics operations.

The move allowed Elders to focus on its strategic and operational strengths – including the marketing of livestock for producers, and accumulation of cattle for exporters, Mr Mr Allison said at the time.

Mr Allison, said that following a thorough sale process, the divestment of the live export logistics business is now complete.

“We are very pleased to confirm that our live export logistics business has been sold to a partnership between Zhoushan Fanda Australian Cattle Industrial Co Ltd (“Fanda”) and the current management of Elders’ live export business North Australian Cattle Company (“NACC”),” said Mr Allison.

“The investment in the business by current live export management and Fanda will ensure continuity, experience and an understanding of the long term relationships that NACC and Elders have built over the past 14 years,” he said.

“This divestment will allow Elders to focus on its area of expertise, which in this case is to provide our producer clients with a range of marketing options for their livestock.”

Photo L-R: Nevin Zheng, Matt Reed, Hamish Shannon, Yiyong Hu (Director), Clement Ko (Chairman), Patrick Underwood (Director), Louis Le Roux.

Fanda has been established by Australian and Chinese owners and is invested in the Sino- Australian Modern Industrial Park (“Zhoushan”). Zhoushan is a development by the Chinese Government as part of the China Australia Free Trade Agreement, and promotes investment for both countries.

Continuing NACC general manager Patrick Underwood said the live export business remains committed to providing high level service to its Australian and overseas customers, and operations will remain business as usual.

“Our focus is to continue our supply of quality livestock to our existing clients across South East Asia, and continue to support these key relationships we’ve built over many years,” Mr Underwood said.

“Through a formal supply agreement with Elders, NACC’s access to quality cattle through the Elders network will remain,” he said.

“In addition to NACC’s existing markets and customers, the new partnership between NACC and Fanda means we now have an incredible opportunity to explore opportunities in China as this market develops.”

Elders also confirmed that it expects to complete the acquisition of horticultural service provider and inputs retailer, Ace Ohlsson today.

Source: Elders