Chicken producer Tegel back on the block

Tegel chicken on sale at the supermarket. Photo / Kenny Rodger

Chicken producer Tegel is back on the block, with investment banks Goldman Sachs and Deutsche Bank having been appointed this week to sell the company.

A market source confirmed that the company's owner, Asian private equity firm Affinity Equity Partners, was eyeing either an initial public offering or trade sale that could value the business at up to $1 billion.

"It's a good asset," the source said. "The business has developed over the last few years - Affinity has done well with that."

Affinity purchased Tegel for $605 million in 2011 from Australian private equity firm Pacific Equity Partners.

PEP bought the chicken firm in 2005 for around $390 million.

Tegel is New Zealand's biggest poultry producer, with operations across the country and about 1700 staff.

Its holding company, Ross Group Holdings, reported a $14 million profit, from revenue of $517.2 million, in the year to April 27, 2014.

Tegel management hold a minority stake in the firm, which has been focusing on growth in export markets in Asia and the Middle East.

It's understood that if an IPO takes place, it is likely to involve a dual listing on both sides of the Tasman.

The source said the deal was likely to be completed either later this year or in early 2016.