One month after the Australian government announced tighter restrictions on foreign ownership of agricultural land, S. Kidman & Co., Australia’s largest private landowner, is selling its cattle operations, including land equivalent to the size of the country of South Korea, to raise capital for other investments and businesses.
For sale are 11 cattle stations, including Anna Creek, the world’s largest ranch at 23,000 square kilometers (14,292 square miles) and a feedlot including more than 200,000 head of cattle. Total land area of 25 million acres reaching across Western Australia, the Northern Territory, Queensland and South Australia are also for sale.
Australia is the world’s third biggest beef exporting country, shipping more than 1.5 million tons of red meat per year, according to the U.S. Department of Agriculture (USDA). S. Kidman & Co.’s beef business produces 15,000 tons of beef annually, and accounts for 1.3% of the country’s slaughtered beef exports.
Greg Campbell, managing director of S. Kidman & Co. states that the family decision to sell is driven by the ability to capitalize on a global increase in demand for Australian assets, and the ability to liquefy capital gains into cash to support their other businesses and ventures.
Last year it was rumored that London-based private equity firm, Terra Firma was interested in acquiring a 50% stake in S. Kidman & Co. in a deal that would place a value on the business of between A$250 and A$300 million.
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