TPG buys Australian poultry producer Inghams

Blackstone was said to be among those that submitted final offers for the company, which is responsible for one in three chickens sold in Australia. The private equity bidders were looking at tapping the US markets for deal financing as the wave of cheap credit that has supported large North American buyouts in recent months filters through to Asia.

Bob Ingham, the sole shareholder in Inghams, put the poultry producer on the block last summer. The initial asking price was around A$1.5 billion but prospective buyers were unwilling to pay so much. An IPO was also considered but it failed to get off the ground due to poor market conditions.

"An important part of the decision for me was finding a buyer who would ensure that our customers will continue to receive the highest level of service and our employees would be well looked after," Bob Ingham said, according to Reuters.

Inghams was founded in 1918 by Bob Ingham's father. Ingham, now 81, and his late brother Jack inherited the business in 1953. Annual revenues exceed A$2 billion from operations in Australia and New Zealand covering chicken and turkey production, piggeries, animal feed and pet food ingredients. EBITDA for the current fiscal year is expected to reach A$200 million.

Australasian food businesses have proved popular with private equity and strategic investors looking to expand operations into Asia. In the meat and poultry segment alone, Affinity Equity Partners acquired Tegal Foods, New Zealand's largest poultry producer, from Pacific Equity Partners in 2011, and bought deli meats business Primo Smallgoods from its family owners the following year.

Investec Bank ran the sale process for Inghams while TPG was advised by Macquarie.

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• Topics
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• TPG Capital