OLAM International said on Monday that it has agreed to sell wool broker Western Wool Marketing to Quality Wool, marking the Singapore commodities group's exit from its niche Australian wool business.
Western Wool Marketing - owned by Queensland Cotton, a wholly-owned subsidiary of Olam Australia - has stores throughout NSW and Victoria. The acquisition will make Quality Wool one of Australia's largest, independent, family-owned and operated wool companies.
Olam Australia's executive director and country head, Bob Dall'Alba, said the sale of Western Wool Marketing is in line with Olam's global strategy of unlocking intrinsic value and pursuing growth opportunities selectively, while exiting non-core operations.
"Olam has been a keen participant within the Australian wool industry. However, given Olam's strategy to optimise our natural fibres business, and the fact that Olam's wool business has been a niche operation restricted to Australia, we decided to exit the business with the sale of Western Wool Marketing to achieve the best strategic and economic outcome for our company."
The acquisition is expected to be completed later this month, subject to customary conditions.