Mackay Sugar has successfully acquired the milling and related assets of Mossman Central Mill for $25.3 million, with the transaction completed on Monday afternoon.

The transaction involved Mackay Sugar issuing approximately $12 million in Mackay Sugar shares to Mossman Central Mill, and assuming their $13 million debt. The shares, which amount to approximately 3.3 per cent of the issued capital of Mackay Sugar, will be held by Mossman Central Mill.

Mackay Sugar Chairman Andrew Cappello said the acquisition would enhance Mackay Sugar’s operations and contribute to the growth of its core business.

“This is an exciting milestone for our company, as it presents additional cane expansion opportunities, which will increase our capacity to produce more sugar.

“We have extended our various cane production incentive schemes to our Mossman growers, which will assist us to realise a 25 per cent increase in cane supply in the first four years.

“In the last few weeks, members of Mackay Sugar management have been meeting with Mossman growers and employees to facilitate a successful transition and prepare for Mossman’s 13 June season start.

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“We estimate Mossman Mill will process approximately 550,000 tonnes of cane in the 2012 season, with more than 6 million tonnes expected to be processed across all four mills,” Mr Cappello said.

The export sugar produced by Mossman Mill will continue to be marketed through Queensland Sugar Limited, with a portion provided to the local Daintree Gold food grade bagged sugar operation under a commercial agreement. 

Mr Cappello also said Mackay Sugar’s Board and management were looking forward to working with Mossman Mill growers and employees to get the mill back up and running to its former production capacity.