Dean Phillips, the owner of United States based HNB National Bank, who is also President and Chairman of T&C Bancorp in Missouri, engaged BDO’s M&A team to sell Koramba, a large cotton farming and ginning enterprise near Goondiwindi, Queensland.
Mr Phillips bought the property in 1985 when it was used solely for grazing. In the pioneering spirit of several American families Mr Phillips converted the property into a large cotton irrigation and dryland cropping farm. Seven years later he established a vertically integrated business by developing a cotton gin.
A successful sale was achieved to Australian Food and Fibre Limited for a purchase price in excess of $100 million. BDO’s role included:
- Preparing the information memorandum which included an outline of the investment thesis, description of the Australian cotton and water industry; details on operations, and the financials;
- Developing a detailed 3-way financial model;
- Marketing to a targeted list of buyers based on our in-depth knowledge on food and agribusiness investors;
- Managing and leading negotiations; and
- Other tasks involved to bring the deal to a successful close.
Bids were received from trade buyers, institutional investors, and high net worth investors based in Australia, North America, Europe, and the Middle East.