TPG Capital buys Australia’s Inghams for $901M

Sydney, Australia (4E) – Private equity firm TPG Capital has bought family-owned business Inghams Enterprises, the company that controls a third of Australia’s chicken market, closing an eight-month sale process.

Sources familiar with the deal said that Australia’s biggest poultry producer agreed to be purchased by TPG Capital for around A$880mn ($901mn).

The private equity group bought the company from its sole shareholder and founder Bob Ingham, beating other buyers including Blackstone, New Hope Group, a Hong-Kong based Affinity Equity Partners consortium and a Chinese agribusiness.

This quarter has seen deals in the global food sector reaching their highest level since the first quarter of 2007, driven by the planned $27.4bn acquisition by Warren Buffett’s Berkshire Hathaway and Brazilian private equity firm 3G Capital of ketchup maker HJ Heinz Co.

In July last year, the 95-year old company was put up for sale by the 81-year old Ingram, valuing the company at more than A$1.5bn. The price was eventually lowered when potential buyers complained of the very high price.

In a company statement, the Ingham family will retain control of its property portfolio and racing units. A spokesperson for Inghams declined to comment on the sale price or valuations of the company.

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