JBS to expand processed food exports from Australia to China
4 Dec 2014
Brazil’s JBS S.A., the world’s largest processor of fresh meats, is set to acquire leading Australian smallgoods producer, Primo Group, under plans to grow its export operations from Australia into Asia, including China.
JBS Australia has signed an A$1.45 billion agreement to acquire Australian ham, bacon and smallgoods producer, Primo Group. The sale is conditional on regulatory approval.
Primo operates five processing plants in Australia and New Zealand and employs over 3,000 people.
Primo Group CEO, Paul Hitchcock, welcomed the proposed sale, saying the transaction offered tremendous opportunities for Primo.
‘We look forward to being part of JBS and capitalising on its international distribution network,’ he said.
Brent Eastwood, Chief Executive Officer of JBS Australia said: ‘Primo Group has strong brands and a reputation for high quality products manufactured to the highest level of food safety.
‘There is a great opportunity for JBS to invest in the ongoing growth of this business, both domestically in Australia and New Zealand, and through expanding the sales of Primo Group products into offshore markets.’
JBS Chief Executive Officer, Wesley Batista said the acquisition is strongly aligned with the JBS global strategy to expand its presence in the value-added product category with well-known brands.
’Primo Group is the leading company in this segment and represents an outstanding opportunity to grow our business in Australia and internationally.
‘We are seeing strong annual growth in consumption of processed meat products with good prospects to increase exports of high quality convenience products from the Primo Group’s portfolio,’ Mr Barista said.
JBS Australia is Australia’s largest fresh meats processor. The Primo Group is the largest ham, bacon and smallgoods producer in Australia and New Zealand. Its brands include Primo Smallgoods, Hans and Beehive.
The sale is subject to regulatory approval from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.