US private equity firm TPG Capital has entered into an agreement to acquire Australia's leading poultry processor Inghams Enterprises for approximately A$880m ($901m).
TPG Capital overcame competition from several other bidders in the auction including private equity firm the Blackstone as well as a consortium led by Chinese agribusiness company New Hope.
The private equity firm was advised by Macquarie Capital in the auction process. TPG Capital had lined up commitments of A$775m ($792.9m) from seven banks to fund the deal, according to the sources familiar with the matter.
Following the transaction, Inghams will retain the existing management structure and will continue to operate the business as usual under the direction of chief executive officer Kevin McBain and his team.
In July 2012, Inghams' only shareholder Bob Ingham put the business up for sale and appointed Investec Bank to assess the divestment.
The company operates ten poultry plants, nine processing facilities, 11 feed mills and a pig farm and employs 8,000 people. It produces chicken and poultry products under the Ingham Chicken brand.
