Today, the sale of the core assets of Australian Wool Services (AWS) to Australian Wool Innovation (AWI) has been completed.
The core assets which have been transferred to AWI include: • A 100% interest in The Woolmark Company. • The Woolmark Company assets, including the Woolmark certification trade mark and associated brands and trade marks, the Woolfleece unregistered trade mark and associated brands, the Sportwool and Woolscience technology businesses and trade marks, and the Woolmark licensing business. • The market intelligence business. • The OptimTM technology business and other working assets of AWS, including stock and plant and equipment.
The transfer of the assets to AWI has been made possible by funding of $15 million from the Australian Government's Minister for Agriculture, Peter McGauran.
The significant work leading up to this transaction has culminated in AWI taking over the core business from AWS today. There have been several rounds of due diligence, management briefings and the provision of a mechanism for addressing the IWS Pension Fund shortfall so that over a period of time a clean break with the Fund is achieved. At the AWS General Meeting in August over 98% of shareholder votes supported the transfer of the core assets to AWI.
As part of the Woolmark business purchase, AWI will also get around $17 million revenue stream from these businesses. A significant portion of this revenue will come from the Woolmark licensees, with 94% of last year's total of over 2000 licensees having already renewed their commitment.
The licensee numbers have been maintained despite the disruption of the integration process and the pressure of recent major structural changes which led to the downsizing of the global wool industry and the decline of customer base for the licensee business.
marketing@alchempro.com
