Poultry processor Inghams Group says the acquisition of New Zealand’s only organic poultry producer, Bostock Brothers, will build the company’s capabilities and extend its range. Ingham’s existing New Zealand operations showed a strong recovery in 1H24 with a 17.5 per cent increase in revenue.
The deal will include the brand, three freehold farming properties, and its primary processing plant.
Bostock Brothers is based in Hastings on the central east coast of the North Island. Its expected FY24 earnings before interest, tax, and amortisation is between NZ$3.5-4 million.
Brothers Ben and George Bostock founded the company in 2014, having grown up on an organic apple farm. Their chickens live in French chalet style sheds, with have having more than a hectare for chickens to range. The property is home to a large organic apple orchard that is no longer used for commercial production, which the chickens forage in as well.
Ingham's CEO New Zealand, Edward Alexander said, “The addition of the highly regarded premium Bostock brand and team strongly aligns with our objective to establish Ingham's as the leading premium operator in the market.”
Ingham's CEO and managing director, Andrew Reeves, said the business unit’s operational and financial improvements meant the acquisition would help advance the company’s business plans.
Exclusive market positioning, brand equity, a vertically integrated supply chain with capacity for future growth, and access to new markets were factors in the decision.
Ingham's will fund the deal from existing debt facilities and subject to conditions expects the deal to be completed in September.
