Poultry processor Inghams Group is set to acquire Bostock Brothers’ (BBL) organic chicken business for $33 million (NZD$35.3 million). The deal will see the company receive all of BBL’s shares, including its poultry products, three freehold farming properties, and the primary processing plant.
Established in 2014, BBL is the only certified organic poultry producer in New Zealand. Its operations are in Hastings on the central east coast of North Island, approximately four hours from Inghams Waitoa’s plant.
Inghams said the acquisition aligns with its strategy of establishing the company as the leading premium poultry operator in New Zealand. It will provide exclusive market positioning and brand equity, a vertically integrated supply chain to support future growth initiatives, and access to new markets, including high-value export channels.
“With the strong recovery in the operational and financial performance of our New Zealand business, this acquisition represents a unique opportunity to enhance our capabilities further, extend our range and advance our plans for the business,” said Andrew Reeves, CEO and MD, Inghams.
The company is estimated to earn between $3.2 million and $3.7 million (NZ$3.5 million and $4 million) in EBITDA by the end of FY24. Additionally, the acquisition is expected to immediately increase earnings per share in FY25.
“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,” added Edward Alexander, CEO at Inghams New Zealand.
The acquisition will be fully funded from existing debt facilities and is subject to the satisfaction of conditions, including those regarding the Commerce Commission and Overseas Investment Office.
It is expected to be completed by the end of September 2024, subject to the satisfaction of conditions.
