TasFoods Limited is planning to purchase broiler company Nichols Poultry. Both companies are located in the Australian state of Tasmania.
According to an ABC.net report, TasFoods Limited has an option to buy Nichols Poultry, a family-owned business that has been in operation since the mid-1980s, for AU$12.55 million (US$8.98 million).
Rob Nichols, managing director of Nichols Poultry, said that several companies had made offers to acquire the business, but he liked the idea of becoming part of TasFoods Limited because of its base in Northwest Tasmania. He also said becoming affiliated with TasFoods will help Nichols Poultry better pursue its plans to expand.
“Our last major expansion was a couple of years ago and that’s now working really well for us. But we are already at the point where we need to grow again,” he said. “For Nichols Poultry to achieve that potential we all know it can do, we really wanted to bring somebody on board that could help us there.
Once the transaction is completed, TasFoods intends to lease a portion of the land to Rob Nichols for grazing cropping purposes. TasFoods will also draw up a contract with him to grow chickens for the company.
TasFoods Limited told the Stock Exchange it had an option to purchase the family business for $12.55 million. The company was a recent unsuccessful bidder for the Van Diemen's Land Company and owns the Meander Valley Dairy. It will now to seek shareholder approval to raise between $15 and $20 million to fund the purchase of Nichols Poultry and for working capital.
Australian agrifood company TasFoods is planning to acquire North West Tasmanian chicken producer Nichols Poultry for A$12.55m ($8.98m). Under the acquisition terms, TasFoods would purchase Nichols' poultry processing facility, 91 hectares of farmland, feed mill, and a wind turbine that supplies power to the processing facility.