Evergreen pays $21m for Carter forests

By Libby Middlebrook

Evergreen Forests has bought two properties for $21 million from competitor Carter Holt Harvey Forests.

The acquisition will increase Evergreen's forestry holding to 21,400ha of radiata pine from Northland to Gisborne with a value of $140 million.

"The objective is to continue to acquire these mid-sized properties that are complementary to each other in age class," said Mark Bogle, Evergreen's chief executive.

He said the purchase had been funded by a combination of debt and the placement of up to 6.1 million 10-year zero coupon convertible notes at $1.06.

A CHH spokesperson said the forestry sales were part of a strategy to ensure the company's forests were strategically located to processing and distribution operations.

Established in 1993, Evergreen announced its first operating profit of $3 million in June.