A US$190 million merger between Australian Oilseed Investments (AOI), the company behind Cootamundra Oilseeds, and US company EDOC Acquisitions Corporation would create an Asian oilseed giant, Grain Central reported.
The merger was expected to result in investment in AOI's crushing plant in Central Queensland, which would quadruple the company's total crushing capacity in Australia to 160,000 tonnes, according to the March 8 report.
Following the merger, EDOC would merge with AOI to form a subsidiary under the new entity Australian Oilseeds Holdings (AOH), which would become the largest cold-pressed oil and meal producer in the Asia-Pacific region, as Grain Central wrote .
With this move, Gary Seaton, director of AOI and managing director of Cootamundra Oilseeds, would assume the roles of CEO and president of AOH.
Bob Wu, AOI's chief financial officer, would continue in his role at AOH.
“With this transaction, investors will be able to invest in our growth and Australian Oilseeds’ mission to become a global leader in sustainable feed ingredients. Seaton said in a statement.
Expansion and innovation in Australia
AOI produces organic cold-pressed oils and canola plant-based protein meals, sunflower, soy, safflower, linseed and olive.
While AOI's main investment is the Cootamundra Oilseeds crushing facility in southern New South Wales, the company also maintains a sales and marketing arm, Good Earth Oils, which distributes and promotes cold-pressed canola oil produced in Cootamundra.
The Company continues plans to plant at Emerald under AOH, costing A$ 25 million (US$ 16.49 million), as reported.
“The facility will produce edible oil and biodiesel for the Asian market and renewable energy,” AOI said. Construction is expected to be completed by March 2025, Grain Central wrote. The installation with a maximum capacity for crushing 200 tons/day of oilseeds and for bleaching and deodorizing 50 tons/day of oil.
Established in 1991, Cootamundra Oilseeds opened its factory in 1992, processing more than 2,000 tonnes annually. Since then, improvements have resulted in an increase in production to 36,000 tons per year.
Source: Oils & Fats International
