Int’l - Aviagen Becomes Part of the Erich Wesjohann Group; Aviagen to Maintain Independence and Share Knowledge

Aviagen International Group, Inc., the world's leading poultry meat science company, has been acquired by Erich Wesjohann GmbH & Co. KG, the leader in the poultry science for the egg layer industry. These complementary poultry science leaders represent unprecedented genetic knowledge and research resources in the industry. Following several years of investment in research and development, plus geographic expansion, the global investment company, Advent International, has made this expected transition. The Erich Wesjohann Group became a strategic partner in Aviagen in November 2003 through the sale of its shareholding in the European poultry distributor, Ross-EPI, to Aviagen. As part of the transaction, Wesjohann acquired a 21 percent stake in Aviagen with its founder and CEO, Erich Wesjohann, joining the Aviagen board. Erich Wesjohann commented, "The combination of Aviagen and the Wesjohann Group creates a strongly diversified life science group for poultry applications. Our two companies share similar cultures, making Wesjohann a natural strategic home for Aviagen, its management team and its employees. The intention is to maintain Aviagen's independence within our group which will require strong leadership, something that Ian Panton, Aviagen's CEO, whom we have known for many years, has consistently demonstrated during his time in the position. I am very much looking forward to working with him and his management team." Although Aviagen and Erich Wesjohann share similar core competencies, both companies serve distinct markets requiring separate business approaches. Aviagen brands include Ross, Arbor Acres, L.I.R. Nicholas Turkeys, and C.W.T. The Erich Wesjohann Group includes independent subsidiaries Hy-Line, Lohmann Tierzucht and H&N International. "This purchase is positive for the industry because it keeps both companies' advanced technologies, research resources, and best practices available horizontally across the broiler chicken, turkey, and egg layer industries around the world," said an independent source within the poultry industry. "We appreciate Advent's vision and dedication to our business," said Aviagen Chief Executive Officer Ian Panton. "Our expanded relationship with The Erich Wesjohann Group promises considerable strategic benefits across the businesses. I am pleased that Aviagen is part of a team that has a long-term commitment to the poultry breeding industry. The ability to share leading poultry science technology and animal husbandry practices among our companies will increase the rate of progress achieved by both the meat poultry and the egg layer industries. Aviagen's position as the most trusted and capable supplier of meat poultry breeding stock in the world will only be strengthened by this acquisition, and our focus on continuous improvement and building long term value for our customers will remain unchanged." Advent International acquired Aviagen in May 2003 in a secondary buyout from BC Partners. During its ownership, Advent invested in the company in three notable acquisitions with the purchases of Belgian and Netherlands-based distributor Ross-EPI, central European-based Babolna Breeding Farms (now Aviagen kft), and the US facilities and operations of turkey breeder BUTA. Performance has also been improved through the introduction of new and enhanced products with a resulting significant increase in US market share. In the period from 2002 to 2004, Aviagen sales increased 25 percent globally. Advent director Humphrey Battcock, who led the Aviagen investment, commented: "Our investment thesis for Aviagen was three-fold: to improve financial results and commercial responsiveness through the downstream integration of distributors; to improve market share in the US - Aviagen's largest market; and to strengthen Aviagen's Nicholas Turkeys' operating base. Working alongside Aviagen's first class management team, we have been able to achieve all three in a period of less than two years. Erich Wesjohann's acquisition of Aviagen will deliver considerable strategic benefit to both businesses going forward."