Australia-based poultry supplier Ingham Group has announced plans to acquire New Zealand peer Bostock Brothers.
In a stock-exchange filing, Inghams said it had planned to pay NZ$35.3m ($21.8m) for Bostock Brothers, which is a supplier of organic chicken.
Inghams CEO Andrew Reeves said: “With the strong recovery in operational and financial performance of our New Zealand business, this acquisition represents a unique opportunity to further enhance our capabilities, extend our range and advance our plans for the business.”
The deal will see Inghams buy the Bostock Brothers brand “with respect to poultry products”, three freehold farming properties and a primary processing plant.
Bostock Brothers is headquartered in Hawke’s Bay in New Zealand’s North Island.
Inghams said the new asset is expected to deliver EBITDA of NZ$3.5-4m in its 2024 fiscal year and be “immediately EPS accretive” to its earnings in fiscal year 2025.
Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Company Profile – free
sample
Your download email will arrive shortly
We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form
By GlobalData
Edward Alexander, the chief executive of Inghams’ business in New Zealand, said: “The addition of the highly regarded premium Bostock brand and team strongly aligns with our objective to establish Inghams as the leading premium operator in the market.”
The deal is expected to close by the end of September.
In September last year, Inghams faced strikes due to a dispute over pay.
Workers at two Inghams factories started action after rejecting an offer of a 3.9% raise in year one of a new pay agreement and 3.5% in subsequent years.
A deal was reached on a 5.12% in the first year with back pay and 4% increases in subsequent years.
