TPG Capital, a global private equity firm, has agreed to buy Ingham Enterprise Pty Ltd., Bob Ingham, chairman of Australia’s biggest poultry producer, said today.
TPG has lined up commitments for A$775 million ($793.3 million) from at least seven banks to finance the acquisition, according to five people familiar with the negotiations. The loan will comprise A$625 million in term debt and A$150 million in revolving facilities, the people said.
The banks include Westpac Banking Corp., Australia & New Zealand Banking Group Ltd., Macquarie Group Ltd., National Australian Bank Ltd., HSBC Holdings Plc, Bank of America Merrill Lynch and Nomura Holdings Inc., the people said. The deal meeting will be held in Melbourne tomorrow, according to the people.
“I am extremely proud of the business and its achievements to date, and it is exciting to see the business embarking on its next stage of growth under the ownership of TPG,” Ingham, the sole shareholder, said in a statement, which didn’t provide the terms of the sale or financial details. The company’s day-to-day operations will continue under the direction of Chief Executive Officer Kevin McBain and his team, according to the statement.
TPG will pay less than A$900 million for Ingham, outbidding rivals including Blackstone, Wall Street Journal reported on March 8, citing unidentified people.
The Sydney-based company put itself up for sale in July, before asking banks to submit proposals last month for an initial public offering aiming to raise A$1 billion, according to people with knowledge of the matter.
The poultry producer had annual revenue of A$2.2 billion in fiscal 2012, according to its website. It employs more than 8,000 staff across Australia and New Zealand and produces fresh and processed chicken and turkey products, as well as animal feed, it says on the website.
Inghams was set up by Walter Ingham, Bob Ingham’s grandfather, with a rooster and six hens in 1918, according to the website.