April 11, 2006

Heinz sells New Zealand poultry processor

Heinz Company has completed the sale of its Auckland, New Zealand-based poultry business, Tegel Foods, to Pacific Equity Partners in a deal valued at NZ$250 million (US$165 million).

First mooted in December last year, the transaction is part of Heinz's strategy to divest non-core businesses to focus on its core categories.

The company expects total proceeds from recent divestitures to be approximately US$1 billion. The company recently sold its seafood business in Europe and Israel and also withdrew its involvement in other businesses from the Netherlands and the UK. The company said it has identified a number of other non-core assets which would be divested over the next six to twelve months.

Tegel is a leading processor of fresh poultry and producer of animal feeds in New Zealand. It markets chilled and frozen chicken and turkey products and owns processing plants, feed mills and livestock operations throughout New Zealand.

Heinz would still be very much involved in the New Zealand market despite the divestiture. The company still retains Heinz Wattie's, a leading food manufacturer in New Zealand. Its flagship range, Wattie's, is among the country's most recognised grocery brands.