Brazil's JBS SA to buy Australian processed foods company Primo Smallgoods for $1.25 bn
22 November 2014
Brazil's JBS SA, the world's largest beef exporter, yesterday announced that it would buy Australian processed foods company Primo Smallgoods, for $1.25 billion, in order to expand in Asia.
The all-cash transaction was carried out by JBS Australia. The deal is subject to approval by the Australian regulatory authorities.
Founded in 1985, Primo Smallgoods is the largest producer of ham, bacon and smallgoods in Australia and New Zealand.
It has recognised brands such as Primo smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats.
The Sydney-based company employs more than 4,000 people and has five production units, seven distribution centers and 30 retail stores.
JBS expects Primo Smallgoods sales of A$ 1.6 billion for 2015 fiscal and estimates to garner around A$30 million in synergies.
"In line with our global strategy to increase our exposure to products and brands added value, this operation with Primo, which is the largest in the industry and has the leading brands, is an excellent opportunity for growth of our business in Australia, given the high rates of annual growth of the category of food products and the increased capacity of the Primo Group sales through exports," said Wesley Batista, global president of JBS.
São Paulo-based JBS is the world's largest processor of beef, lamb and poultry, and has a strong interest in pork production.
With more than 200,000 employees worldwide and sales in more than 150 countries, the company has 340 production units and operates in the areas of food, leather, biodiesel, collagen, metal packaging and cleaning products.