KKR Acquires Australian Chicken Giant ProTen from Aware Super, Signaling Strategic Growth

Sydney, Australia – July 2, 2025 – Global private equity powerhouse KKR has announced its acquisition of ProTen, one of Australia's largest broiler chicken growers, from the prominent Australian pension fund Aware Super. While the financial terms of the transaction were not disclosed in the joint statement released on Wednesday, the deal underscores KKR's continued strategic investment in essential infrastructure and food production sectors globally.

ProTen, a significant player in the Australian agricultural landscape, operates a substantial network of chicken farms, supplying a considerable portion of the country's poultry market. Its acquisition by KKR, a firm known for its deep operational expertise and long-term investment horizon, is expected to bring significant capital and strategic guidance to ProTen, potentially accelerating its growth and operational efficiencies.

Strategic Rationale Behind the Acquisition

KKR's move to acquire ProTen aligns with several key investment themes:

• Food Security and Essential Infrastructure: The poultry industry is a critical component of global food supply chains. Investing in a leading broiler chicken grower like ProTen provides KKR with exposure to a resilient sector driven by consistent consumer demand.
• Australian Market Appeal: Australia's stable economic environment, strong agricultural sector, and growing population make it an attractive destination for private equity investment. KKR has a history of significant investments in the Australian market, including past ventures in infrastructure and healthcare.
• Operational Enhancement Potential: Private equity firms often seek out companies where they can implement operational improvements, optimize supply chains, and drive efficiency. KKR's track record suggests they will likely focus on enhancing ProTen's existing operations and potentially expanding its capacity.

Aware Super's Divestment Strategy

For Aware Super, one of Australia's largest superannuation funds, the divestment of ProTen likely represents a successful realization of value from a prior investment. Pension funds frequently cycle through assets, selling mature investments to reallocate capital into new opportunities that align with their long-term return objectives and diversification strategies. This transaction allows Aware Super to lock in gains and potentially deploy capital into other sectors or asset classes that offer attractive risk-adjusted returns for its members.

Market Implications and Outlook

This acquisition could have several implications for the Australian agricultural and food processing sectors:

• Consolidation Trend: The deal highlights a broader trend of consolidation within the agricultural sector, as larger financial sponsors seek to acquire scale and efficiency in food production.
• Increased Investment in Agribusiness: KKR's investment may signal increased private equity interest in Australian agribusiness, potentially leading to further M&A activity in the sector.
• Impact on Supply Chain: With KKR's backing, ProTen could expand its operations, potentially influencing the dynamics of the Australian poultry supply chain, from feed production to processing and distribution.

Investment Insights for KKR Stockholders

While KKR is a private equity firm and not a direct operating company in the traditional sense, this acquisition is positive for KKR's overall investment portfolio and its limited partners. For investors tracking KKR's public stock (KKR), this deal reinforces the firm's strategy of deploying capital into diversified, resilient assets with strong underlying fundamentals. It demonstrates KKR's ability to identify and execute significant transactions in attractive sectors, contributing to its overall asset under management growth and fee-generating capabilities. The acquisition of a stable, cash-generative asset like ProTen enhances the quality and diversification of KKR's private equity holdings.

This transaction is a testament to KKR's global reach and its commitment to investing in critical industries that underpin economic stability and growth. The partnership with ProTen is poised to strengthen the Australian poultry industry while delivering value for KKR's investors.