This column previously reported that Pacific Equity Partners would be lining up for the $400m-plus New Zealand egg producer Mainland Poultry, but it seems its rival has been given jump on the deal.
DataRoom understands that Roc Partners has been given an early preview.
The Australian fund is understood to have been running the ruler over the business in recent months.
Roc Partners likes agriculture. It was circling SunPork when it was for sale, along with cotton business Ascott, and tried to buy the landlord of fruit and vegetable grower Costa, Vitalharvest Freehold Trust.
In 2018 it purchased Capilano Honey and has also looked at Harris Farm Markets and Perfection Fresh.
Expectations are that a sale process through adviser Luminis Partners will start next year.
Private equity firm Navis Capital purchased the Zeagold business, then known as Mainland Poultry, in 2017 for $NZ350m.
At the time, Adamantem Capital was the underbidder, so it may line up again.
Mainland Poultry is believed to be making more than $NZ45m ($42m) in annual earnings before interest, tax, depreciation and amortisation.
Based in Dunedin, it sells Zeagold Quality Eggs.
Back in 2017 it had more than 1.2 million birds across seven farms, along with a feed division known as MainFeeds.
The eggs division, known as Zeagold, markets eggs in supermarkets through the Farmer Brown and Woodland brands.
It is also a leading egg supplier to the food service sector.
The company is unlikely to face any major competition, with New Zealand’s strict rules to prevent the outbreak of disease restricting egg imports.
The challenge for the sector has been that egg producers are transitioning away from battery cage farming.
It’s now banned in New Zealand, a move that last year created a shortage of eggs in the country and caused the price to hit about $NZ12 a dozen.
But while prices have been high, the changes have also been accompanied with larger capital costs for the farmers.
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