The sale of Dunedin-based Mainland Poultry to an Australian investment fund has been confirmed by the Overseas Investment Office. The sale of Mainland Poultry, for a price believed to exceed $100 million, will speed up its transformation and investment in new cages ahead of schedule.
The new owners intend to help make the transition from conventional cages earlier than required by law and to grow Mainland Poultry. The cost of changing to new and bigger cages is estimated to be as high as $50m.
Mainland Poultry is New Zealand’s biggest egg-producing business, sold under the Zeagold and associated brands. It also rears layer hens and produces animal feed through subsidiary companies to supply other poultry companies as well.
Australian media reports have put the value of the deal at NZ$350m, which comes as the company embarks on major investment to comply with pending animal welfare rules over the size of cages. Mainland’s previous owners include Dunedin investors Michael Guthrie, and Murray Valentine who set up the company in 1997. Guthrie owned about three quarters of the company, and is listed in the NBR as having a $200m fortune. Guthrie, Valentine and other New Zealand Mainland shareholders will keep a 25% stake in the company.
