Roc stays abreast of potential $1bn ProTen chicken play

ProTen describes itself as the leading broiler chicken farm developer and operator in Australia.

Private equity firm Roc Partners is in pole position to buy the poultry business ProTen that may sell through Macquarie Capital for as much as $1bn, according to sources.

The operation is on the block through its owner Aware Super.

Roc Partners had been the manager of the business on Aware Super’s behalf, but when it was put up for sale it is understood to have stood down from this position. It’s believed the reason for the move was so that it could bid for the business, and it is now seen as having the inside running.

ProTen describes itself as the leading broiler chicken farm developer and operator in Australia, owning and operating 561 poultry sheds across 47 broiler farms in NSW, Victoria, South Australia, Western Australia and Queensland.

The farms have the capacity to produce up to 133 million broiler chickens for meat production annually, representing about 19 per cent of the country’s annual broiler chicken production.

The business was started in New Zealand in 1987 and the company was formed in 2001, with farms sold in New Zealand and capital redeployed in Australia where it now operates and has grown through acquisition.

Price estimates for the business are between $700m and $1bn for what is considered to be a property play where much of its earnings are rent. Annual earnings before interest, tax, depreciation and amortisation are estimated to be about $60m.

Roc Partners is headed by former Macquarie executive Michael Lukin and last year Roc was eyeing the $400m-plus New Zealand egg producer Mainland Poultry as part of its attraction to agriculture-related assets.

It was circling SunPork, along with cotton business Ascott, and tried to buy the landlord of fruit and vegetable grower Costa, Vitalharvest Freehold Trust.