Former Bradken CEO shells out $3.7m for egg farm
Brian Hodges, the former chief executive of mining services and heavy equipment maker Bradken, has expanded his interests in the agricultural sector after buying a large poultry farm in the NSW Lower Hunter.
Title deeds show Mr Hodges paid $3.7 million for the Stroud Road free-range egg farm, which lies about 82 kilometres northwest of Newcastle.
He also paid an undisclosed price for the operating business.
The 78.5-hectare freehold property, plant, machinery and egg supply contract was put up for sale in 2019 by the Lawrence family.
The Lawrence family acquired what was then a meat chicken farm (where the chickens are grown for their meat, as opposed to laying eggs). In 2014, it spent $1.6 million converting it into an egg farm. It was sold to wind up the family partnership.
The vertically integrated egg farm now has an 85,000-bird capacity and produces between 67,000 and 73,000 eggs daily, according to an information memorandum prepared by selling agents Colliers International.
The eggs are supplied to Pace Farms.
Widespread interest
Colliers agent Mike Clifton confirmed the sale but because of a confidentiality agreement was unable to comment on the buyer, other than to say it was an “existing industry participant.” Nor would he comment on the price.
“It’s a very good property and attracted widespread interest,” Mr Clifton said.
The egg farm at 725 The Bucketts Way in Stroud Road is bounded by the Mammy Johnson River on its Eastern boundary and the Karuah River on the West.
The property boasts a 55 ML irrigation licence together with town water, which supplies the five poultry tunnel sheds.
Other improvements include a four-bedroom homestead, a second four-bedroom cottage, insulated packing shed and machinery sheds.
Egg processing and packaging is fully automated, allowing the whole facility to be operated by only four people.
In addition to egg production, the property carries a 50 cow-breeding herd throughout the year.
The new owner, Mr Hodges, was chief executive of Newcastle-based Bradken from April 2004 to the end of 2015 and spent 18 years at the former ASX-listed company.
During his time as CEO, Bradken was chaired by former NSW Premier Nick Greiner, who stepped down in September 2015.
It was acquired by Japan’s Hitachi Construction Machinery in 2016 for just less than $1 billion following a tumultuous period when the business suffered from the effects of the mining slowdown.
Recent sales in the poultry sector include Peacefield Poultry, one of Queensland’s largest chicken farmers.
Its assets were acquired by Financial Review Rich Lister Michael Gordon and the Singh family in a $30 million-plus deal.
