ArborGen Holdings Limited (NZX: ARB), a leading commercial supplier of proprietary advanced genetics seedlings in the US South, has announced the conclusion of its strategic review initiated on 30 June 2021.
The Board of ArborGen have refocussed the business on its core traditional and emerging high growth markets in the US South and Brazil, as well as on new and emerging high growth carbon markets.
This refocused strategy has seen the sale of the Company's Australia and New Zealand business on 30 November 2021 for NZ$22.25 million, substantially strengthening its balance sheet and affording it greater opportunities to invest in targeted growth arenas.
The US South is expected to be the largest beneficiary of the strong housing market fundamentals, with Forest Economic Advisors projecting 24% growth relative to last year's output to reach 26.0 BBF by 2025.
ArborGen is well-positioned to leverage this growth due to over 20 years of investment in developing best-in-class proprietary MCP products, and is further investing US$1 million to expand in-house container capacity across two existing owned sites.
ArborGen also considers the underlying market fundamentals in Brazil to be very strong, and has grown to become one of the largest commercial suppliers of eucalyptus and lobl
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