Affinity approaches bankers over possible sale of Tegel Foods
The Australian Financial Review yesterday reported the sale could fetch about $A900m.
Affinity Equity Partners, the pan-Asian private equity firm, has approached a number of investment banks as it looks to sell New Zealand's largest poultry business, Tegel Foods.
Investment bankers have confirmed to BusinessDesk that Affinity is considering a trade sale or initial public offering of the Auckland-based poultry business. The Australian Financial Review yesterday reported the sale could fetch about $A900 million.
Affinity bought Tegel from Pacific Equity Partners in 2011 for a reported $600 million, and since then has divested the company's property, including the sale of two long lease chicken processing plants to buyers including Wellington-based Caniwi Capital for $60 million in July 2013.
Tegel reported a profit of $14.1 million on sales of $517.2 million in the year ended April 27, 2014, the last accounts filed by holding company Ross Group Holdings. At balance date, the company had bank borrowings of $214.9 million, which were repayable in two years, and $60.4 million of mezzanine debt, repayable in three years.
The majority of New Zealand's chicken industry is owned by private equity investors after Inghams Enterprises (NZ), the country's second-largest poultry producer, was sold, along with its Australian parent Ingham Enterprises, to TPG for $A880 million in June 2013.
Dutch agricultural lender Rabobank has forecast global demand for poultry will increase 60% to become the most consumed meat globally by 2030.
(BusinessDesk)
Suze Metherell
Wed, 29 Jul 2015
Wed, 29 Jul 2015
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Affinity approaches bankers over possible sale of Tegel Foods
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