JBS buy sees it expand Australian presence

JBS said it had entered into a definitive agreement to purchase 100% of the share capital of Primo Group, the “largest producer of ham, bacon and small goods in Australia”. The acquisition will cost JBS AU$1.45bn in cash, the equivalent of US$1.25bn.

Wesley Batista, global CEO of JBS, said: “This acquisition is strongly aligned with our global strategy to expand our presence in the value-added product category and well-known brands. Primo Group is the leading company in this segment, with strong brands, and represents an outstanding opportunity to expand our business in Australia, considering the annual growth in the consumption of prepared products and the prospects to increase exports of convenient products from the Primo Group portfolio.”

JBS said it anticipated incremental annual revenue of approximately AU$1.6bn and EBITDA of AU$150m as a result of the transaction.

Primo Group was established in 1985, and has a portfolio of brands including Primo Smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats. It currently employs over 4,000 people and operates from five manufacturing plants, seven distribution centres and 30 retail shops.

The acquisition is subject to the approval of the Australian regulatory authorities.