US-based meat company OSI Group has struck a deal to merge its Australian operations with local poultry business Cordina Group.
The deal will see alternative investment firm PAG divest its majority stake in Cordina Group, which will then be combined with OSI’s local subsidiary Turosi.
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The new company will trade as Cordina OSI and will be jointly owned by OSI and the founding Cordina family.
The financial details of the transaction were not disclosed.
In a statement, PAG said the deal will create a “larger Australian poultry business with an expanded product offering”.
It added the combined group will have a broader footprint across Victoria, New South Wales and Queensland, along with “enhanced capability” to serve large national and multinational customers.
Under the new governance structure, 30-year industry veteran Louise Cordina will be the company’s chair. Anne‑Marie Mooney will become the CEO.
OSI Group president and COO Mark Richardson said: “By combining Cordina’s strong local heritage and customer relationships with OSI’s global industry expertise, operational best practices and international food manufacturing capabilities, we believe the business will be well positioned to better serve customers and pursue its next phase of growth across Australia.”
Asia Pacific-focused PAG invested in Cordina Group in 2022 to fund capital works.
Over the past four years, it backed a series of supply chain developments, including an A$80m ($57.3m) breeder farm project and an A$75m hatchery.
Louise Cordina said: “We are grateful for PAG’s support and partnership which has been pivotal for the business and fundamental in positioning Cordina Group for its next chapter of growth.
“We look forward to building on this strong foundation as part of Cordina OSI.”
The deal remains subject to regulatory approval and is expected to close by the end of this year.
OSI entered the Australian market in 1996 via a joint venture. The company formed Turosi in 2018 following the merger of OSI International Foods (Aust) and a family-owned business Turi Foods.
