Olam Australia, a wholly-owned subsidiary of mainboard-listed Olam International, said on Monday that privately-owned Quality Wool has agreed to acquire its unit Western Wool Marketing, a wool broker.

No price details were given.

Owned by Queensland Cotton, a wholly owned subsidiary of Olam Australia, Western Wool Marketing has stores throughout New South Wales and Victoria.

With the addition of Western Wool Marketing, Quality Wool becomes one of Australia's largest, independent, family-owned and operated wool companies.

Olam Australia executive director and country head, Bob Dall'Alba, said the sale of Western Wool Marketing to Quality Wool was in line with Olam's global strategy of unlocking intrinsic value and pursuing growth opportunities selectively, while exiting non-core operations.

He added: "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.