8 Feb 2011

Overseas company applies to buy Tegel

1:06 pm on 8 February 2011

An Asia-Pacific private equity fund is preparing to buy Tegel Foods.

The Overseas Investment Office has confirmed Affinity Equity Partners has lodged an application to buy the poultry company, although no decision has been made.

Some media reports put the sale price at $605 million.

Tegel employs 1055 people and is currently owned by the Australasian private equity firm, Pacific Equity Partners, which bought it from Heinz for $250 million in 2005.

It sold a 37% stake to ANZ Bank's private equity arm in 2007.

Affinity Equity Partners has funds and assets worth $US4 billion and says it aims to hold portfolio companies for four to six years.