Brickworks Limited (BKW) announced that it has signed an agreement to acquire the assets of Gunns Limited’s Jarrah saw milling, processing and retail business in Western Australia for $6 million. The acquisition price includes the Deanmill sawmill, Manjimup Processing Centre, Welshpool retail operation and stock. The transaction is scheduled for completion on 2 December, 2011. The addition of the iconic Jarrah timber species to Auswest Timbers’ existing hardwood ranges, including Karri and Marri, creates a market-leading range of high quality, Australian hardwood timber.
Mr Lindsay Partridge, Managing Director of Brickworks Limited, said: “The Deanmill area has been hit hard by the recent closure of the saw mill. Auswest Timbers has not only offered employment to all current staff but in a major boost to the area we are pleased to announce that we are planning on re-opening the saw mill, providing a major boost to employment in the area. “This acquisition provides substantial synergies to our existing Auswest Timber assets at Pemberton in Western Australia. “The addition of the retail outlet at Welshpool in Perth provides a complementary channel to get both our existing and new product ranges to market,” added Mr Partridge.
Brickworks Limited listed on the Australian Securities Exchange in 1962 and has paid a dividend every year since then. It has three divisions – Building Products, Land and Development and Investments. The Building Products division includes Australia’s largest bricks producer Austral BricksTM, as well as Austral MasonryTM, Bristile RoofingTM, Auswest TimbersTM, and Austral PrecastTM. The Land and Development operation maximises value from surplus land and redundant building products sites. Investments include a 42.85% holding in Washington H. Soul Pattinson & Company Limited.
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