TasFoods plans to buy Nichols Poultry

Tasmanian agrifoods business TasFoods is considering the acquisition of north west Tasmania-based poultry processor Nichols Poultry.

Nichols Poultry is a family owned business that processes chicken meat produced in its own poultry and in the poultry of contracted growers.

TasFoods Limited is considering buying Nichols Poultry for $12.5m.

TasFoods plans to raise between $15m and $20m to cover the cost of acquisition and for the working capital, reported ABC.net.au.

With the buyout of the privately owned poultry business, TasFoods aims to elevate its brand name.

The company plans to hold a general meeting on 29 April to discuss the purchase.

Nichols Poultry is expected to be purchased by the end of May 2016 if the acquisition is supported by TasFoods’ shareholders, reported Queensland Country Life.

Nichols Poultry managing director Rob Nichols was quoted by ABC saying: "Our last major expansion was a couple of years ago and that is now working really well for us.

"But we are already at the point where we need to grow again.

"For Nichols Poultry to achieve the potential we all know it can do, we really wanted to bring somebody on board that could help us there."

The acquisition deal will include the poultry processing facility, a feed mill, 91 hectares of farmland and a wind turbine to provide power to the processing unit.

Rob Nichols added: "The flow-on effects are quite huge.

"If the business is to double from where it is at the moment, then we certainly need a huge amount of breeder facilities, and we probably need new hatchery facilities."

Nichols Poultry is owned and managed by Rob and Joanne Nichols.

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Image: TasFoods Limited is considering buying Nichols Poultry for $12.5m. Photo: courtesy of njaj / freedigitalphotos.