Australia’s TasFoods has been acquired out of voluntary administration by Ramp Tasmania Poultry.
In a statement, KPMG, the voluntary administrator of ASX-listed TasFoods, said the “sale ensures the continued local operation of TasFoods and the employment of all Tasmanian staff under the new ownership”.
Privately held Ramp took over operations on 1 June, closing the sale process launched after Launceston-based TasFoods entered administration in March.
The move followed TasFoods’ unsuccessful bid to sell its core Nichols Poultry business, with the board determining that voluntary administration was “the most appropriate way to restructure the group”.
Under a proposal tabled in May, Ramp committed A$6.5m ($4.5m) through a Deed of Company Arrangement and agreed to take on employee leave liabilities while preserving continuity of service for about 160 workers, a KPMG document showed.
KPMG had said at the time the proposal offered a better outcome than liquidation, which would have triggered redundancy costs and a wind-down of poultry operations.
KPMG said in its latest statement that the administration process attracted “extensive interest” from Tasmanian and mainland Australian buyers.
Ramp owner and CEO Brad McAuliffe told Just Food that he is now a co-owner of TasFoods alongside fellow directors. He added that Ramp was established in Victoria and operates a portfolio of food businesses including Surf Coast Eggs and Avgo Group, and now Nichols Poultry.
McAuliffe declined to comment on the purchase price, describing the transaction terms as commercially confidential.
In comments in the KPMG statement, McAuliffe said Ramp planned to rebuild the business around the local Nichols brand.
“Nichols has earned its name in Tasmania over decades, and we’re not here to coast on that. We’re taking it back to its grass roots and building the brand into something stronger than ever,” he said.
“The team stays, the jobs stay, and we grow it. Tasmanian food for Tasmanian people, and we mean it.”
KPMG Australia's turnaround and restructuring partner Tim Mableson said: “We are delighted to announce the sale of TasFoods. Importantly, we have been able to reach an outcome that keeps the highly regarded and local Nichols Poultry brand and its operations in Tasmania.”
