AUSTRALIA - Subject to regulatory approval, JBS has agreed to purchase Primo Smallgoods Group's operations, a processor of products such as ham, sausage and bacon, in Australia.
JBS has announced the purchase of global Primo Smallgoods Group's operations in Australia for A$1.45 billion (US$1.25 billion). The transaction was carried out by JBS Australia, will be paid in cash and is subject to approval by the Australian regulatory authorities.
Established in 1985, the Primo Group is the leader in processed products such as ham, sausage and bacon in Australia and New Zealand. It has recognised market-leading brands such as Primo Smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats. Primo Group employs more than 4,000 employees and has five production units, seven distribution centres and 30 retail stores.
Renowned for its quality products, Primo Group has equipment and the latest technology and production units that represent the benchmark for the industry. The income expected for 2015 (fiscal year July 2014 to June 2015 is A$1.6 billion and EBITDA of A$150 million.
JBS estimates to capture around A$30 million in synergies from the transaction, which will raise projected EBITDA for 2015 to A$180 million, equivalent to eight times the EV acquisition / post-synergies EBITDA.
Wesley Batista, global president of JBS, commented: "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."
ThePigSite News Desk