TPG secures partial exit from Australian poultry player

The private equity firm sold 55 million shares for an undisclosed sum, according to a filing. Based on the March 13 closing price of A$3.80, the proceeds were approximately A$210 million ($165 million). As of late morning trading on March 15, Inghams stock was at A$3.50. TPG’s stake has fallen from 47% to 33%, with the remaining holding worth around A$433 million.

Founded in 1918, Ingham's is the largest vertically integrated poultry producer in Australia and ranks number two in New Zealand, with estimated market shares of 40% and 34%, respectively, at the time of its IPO. The company has 345 facilities and farms across both countries, most of them owned and operated by third parties. Inghams also supplies various poultry, dairy, horse, and pig feeds.

The company was family-owned until TPG’s acquisition. The private equity firm paid A$869 million and obtained A$625 million in debt financing. It took some money out of the business in 2014 following the sale of a portfolio of real estate assets and conversion of those properties to leaseback.

Inghams raised A$596.4 million in its IPO, selling shares at A$3.15 apiece, after scaling back the size of the offering. TPG exited 119.2 million shares, realizing proceeds of A$375.5 million.

The company reported revenue of A$2.43 billion for the 12 months ended June 2017, up from A$2.31 billion the previous year. Over the same period, EBITDA increased from A$106.6 million to A$160.3 million while net profit went from A$25.2 million to A$59.1 million.

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• Topics
• Australasia
• Industrials
• Open market
• Australia
• Agriculture
• Exit
• TPG Capital