Adamantem buys its second Australia horse feed business
Australian middle-market private equity firm Adamantem Capital has agreed to pay A$59.5 million ($43.2 million) for poultry producer Inghams Group’s Mitavite animal feed business. It is a bolt-on acquisition for horse feed producer Hygain Holdings.
Adamantem – which was established by former Pacific Equity Partners executives Anthony Kerwick and Rob Koczkar in 2016 and closed its debut fund in March at A$608 million – purchased Hygain last November at a reported valuation of A$150 million. The previously family-owned business produces specialized feed and supplements to the horse racing, breeding and equestrian market segments through wholesalers and independent retailers.
The Melbourne-based company distributes throughout Australasia, North and South Asia, the Middle East and Europe. Adamantem said it would work with management to grow Hygain’s customer base and turn it into a leading, global, premium horse feed business.
Mitavite was conceived in 1987 as Australian Feed Company and Inghams first took a 50% stake in the business later the same decade and bought it outright in the 1990s. Much like Hygain, the original premise of the business was improving racehorse performance through changes to horses’ diets. The company produces a range of feeds customized to animal function – for example, breeding, racing, and general sport and lifestyle – as well as supplements.
Inghams has divisions that produce feed for the poultry, pig, dairy and equine industries, although most of it is used internally for the company’s core poultry business. The company generated A$286.9 million in revenue from external feed sales in the 2017 financial year.
In addition to Hygain and Mitavite, Adamantem has invested in New Zealand’s Heritage Lifecare and data and analytics consultancy Servian. It targets businesses with an enterprise value of A$100-500 million.
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