Bartter-Steggles Seeks Investors to Accelerate Growth

Sydney, Jan 22, 2008 (ABN Newswire) - The sale of one of Australia's leading poultry producers, Bartter-Steggles, has attracted interest from private equity firms and trade players from across the sector. The company is seeking investors to acquire or invest in the business to help fund the growth, development and modernization of the business.

The Australian poultry industry has generated revenues of approximately $2.7 billion and is expected to grow at 2.8% per annum. Higher growth of 5.0-6.5% is expected from value added products driven by a trend towards healthier eating, pre-prepared meals and product innovation.

Over the past 4 years Bartter-Steggles, which has a market share of 26%, has delivered a strategy to capitalize on these trends through new product development. Its product pipeline is strong with another 20 products set for release over the next 18 months.

In November 2006, as part of its expansion, Bartter-Steggles moved to full ownership of Steggles Foods by acquiring a further 50% interest from US based food business OSI Group.

Bartter-Steggles has invested heavily in business improvement during the last 18 months which delivered $24 million in annualized cost savings for the year to June 2007. The company expects another $12.9 million in cost to come out the business this financial year. These cost initiatives coupled with its success in passing on rising feed costs has the company on track for a strong year.

The Chief Executive of Bartter-Steggles, Geoff Frost, said: "Our experienced management team continues to drive improvements across the business and remains focused on accelerating earnings growth and taking the business to its next stage of development."

Bartter-Steggles customers include: Coles, Woolworths, Metcash, Franklins, Foodworks, Lenards, McDonalds, KFC, Red Rooster, Oporto and Nandos.

Considering the poultry industry remains relatively fragmented with significant potential to rationalize the sector offering a buyer significant upside, it is little wonder private equity is eyeing the Aussie icon.

The Information Memorandum will be release by the end of January, with indicative offers by the end of February and final offers due by the end of March.

About Bartter Enterprises Pty Limited

Bartter Enterprises Pty Limited, proud owners of the Steggles brand, is Australia's second largest poultry producer, employing over 4500 employees throughout its farming, processing, distribution and marketing & sales operations. Bartter Enterprises manufacture and distribute fresh and frozen, whole and portioned chicken and turkey products nationally. Family owned and operated, the company has expanded significantly over the recent years and is now processing in excess of 2.4 million chickens per week and processing over 100,000 turkeys in peak season per week.

Steggles Foods Products is a major value adding, further processing producer supplying cooked, semi-cooked and further manufactured chicken and turkey products into the Retail, Foodservice and QSR (Quick Service Restaurants) channels.