Softwood forestry company Willmott Forests has acquired a controlling interest in the BioForest group of companies in a move that chief executive officer Marcus Derham said will deliver an earlier income to managed investment scheme growers and provide diversification into energy and fuel production markets.

BioForest is an emerging player in the forestry MIS market that is involved in producing high grade timber for veneers, as well as renewable fuels, green energy and carbon credits.

One of BioForest's businesses is the conversion of timber waste into wood pellets used for heating in offshore markets.

Willmott Forests plans to launch a new forestry MIS that blends the two company's products and that will provide a more regular income to growers. Currently Willmott Forests pays income at years 13, 18, and 25, Derham said. BioForest pays income at year 3, and every three to five years thereafter.

"Put the two together and you end up with an annuity style product with tax effectiveness built into it - making for a very attractive investment," Derham said.

Veritas Securities research analyst Wassim Kisirwani [subs:ok] said the acquisition of BioForest is a small diversification move for Willmott, but one that gives the company an early entry into a developing renewable energy industry based on timber products.

The new product also stands to benefit from the government's favourable stance on forestry MIS, he said. "Willmott has always been determined to stick to forestry products, and the government's ruling shows the company has clearly been correct in its stance."