Big trans-Tasman poultry processor and stockfeed business, Ingham's Group will be run by long-time US food sector boss, Jim Leighton, replacing Mick McMahon as managing director.
Mr McMahon recently ended three-plus years in the role during which time he oversaw the former Ingham family company’s $1.1 billion public listing on the Australian Securities Exchange in 2016.
Despite pressure from rising feed, energy and insurance costs, Inghams reported a 3.2 per cent lift in chicken and turkey throughput volumes in 2017-18 and a 12.4pc rise in after tax profit to $114.6 million.
Mr Leighton’s background spans involvement with US food giants such as Maryland poultry business, Perdue Farms, and Colarado’s Pilgrim’s Pride chicken meat processor (owned by JBS) and specialist dietary products marketer, Boulder Brands.
He is also on the board of $6 billion European baking business, Aryzta, and working on special projects with the company.
Jim is the right person to lead Ingham’s – he was the standout candidate
- Peter Bush, Inghams chairman
He is expected to join Inghams early in 2019 on four year contract with a $1.5m annual base salary.
Company chairman, Peter Bush, said after conducting a global and domestic search “Jim is the right person to lead Ingham’s – he was the standout candidate”.
“We are thrilled he is moving to Australia from the United States to take up the role as soon as visa formalities are finalised,” Mr Bush said.
As well as deep experience in the northern hemisphere protein and poultry industry, Mr Leighton had a valuable blend of commercial and operations functional expertise.
“His career was built coming up through the ranks of manufacturing and supply chain management, with a focus on driving operational improvements and efficiencies,” he said.
Mr Leighton was until recently founding president of 40North Foods – a start-up venture backed by Pilgrims Pride and global meat business JBS.
His early career included a variety of operations roles at Nabisco Foods, ConAgra and The Hain-Celestial Group.
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Mr Leighton, in Australia for Inghams annual general meeting, said few companies enjoyed the company’s rich heritage and legacy of success.
He looked forward to working with directors and its staff to stimulate progress and growth.
Acting chief executive officer, Quinton Hilderbrand, will stay in the job until Mr Leighton arrives.
At this week’s AGM Mr Bush thanked Mr McMahon for his very significant contribution to the company.
Mr McMahon has also just stepped down as a director, saying he believed it was good governance and appropriate for him to resign from the board following Mr Leighton’s appointment.
Fellow director, Joel Thickins, is also about to retire, reducing the private equity group TPG Capital’s representation on the board to one.
Inghams’ major shareholder has scaled its ownership back to about a third of the company’s listed stock since publicly floating the company.
Two replacement directors are being sought, while current director, Linda Nicholas, was re-elected at the AGM.
Shareholders were told net debt was down to $145.4m and customer contractual coverage had extended over more than 60pc of chicken volumes via agreements which included feed cost pass through and cost arrangements.
Inghams is in the throes of selling its Cardiff feed mill in Newcastle, closing its Brisbane value-adding plant, and has just concluded the sale of its Mitavite horse feed business.
It is building a new feed mill in South Australia, has bought a new mill in Queensland and is doubling its chicken business volumes in Western Australia.
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