Australia-based poultry supplier Ingham Group has announced plans to acquire New Zealand peer Bostock Brothers. The acquisition, valued at NZ$35.3m ($21.8m), will further enhance Ingham’s capabilities in the organic chicken market. In a stock-exchange filing, Inghams CEO Andrew Reeves stated, “With the strong recovery in operational and financial performance of our New Zealand business, this acquisition represents a unique opportunity to extend our range and advance our plans for the business.”
The deal includes the acquisition of the Bostock Brothers brand for poultry products, three freehold farming properties, and a primary processing plant. Bostock Brothers, headquartered in Hawke’s Bay on New Zealand’s North Island, has established a strong presence in the organic poultry sector. Inghams anticipates that the acquisition will deliver EBITDA of NZ$3.5-4m in the 2024 fiscal year and be “immediately EPS accretive” to its earnings in fiscal year 2025.
Edward Alexander, the chief executive of Inghams’ business in New Zealand, expressed enthusiasm about the acquisition, stating, “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, expected to close by the end of September, marks a strategic move for Ingham Group to strengthen its position in the poultry industry.
In September last year, Inghams faced strikes in Australia due to a pay dispute. Workers at two Inghams factories initiated strike action after rejecting a proposed pay raise. However, a deal was eventually reached, securing a 5.12% increase in the first year with back pay and 4% increases in subsequent years.
