JBS Australia acquires Primo Group for $1.45bn

JBS Australia has completed the $1.45bn acquisition of Primo Group, the largest antipodean producer of ham, bacon and small goods. 

Five processing plants that operate across Australia and New Zealand will be a part of the deal. Close to 3,000 people are employed at these facilities.

JBS Australia chief executive Brent Eastwood was reported by The Australian as saying that the deal signalled the company’s commitment to investment in the Australian food manufacturing industry.

Eastwood said: "We see an enormous opportunity to grow Primo’s range of pork-related products in the Asian export market."

"It enables Primo’s leading smallgoods brands portfolio to growth through our global sales expertise and to have direct access to our extensive international customer sales network."

Primo’s portfolio includes brands such as Primo Smallgoods, Hans and Beehive.

Approximately 70.1% of Primo’s shares were acquired by private equity firm Affinity Equity Partners in October 2011, when Primo acquired Premier Beehive in New Zealand and has grown its export sales significantly.

The Guardian reported JBS CEO Wesley Batista as saying that the acquisition was strongly aligned with his company’s global strategy to expand its presence in the value-added product category with well-known brands.

Batista said: "Primo Group is the leading company in this segment with strong brands and represents an outstanding opportunity to grow our business in Australia and internationally."

Primo Group’s chief executive Paul Hitchcock said: "While it will remain very much business as usual for our employees, suppliers and customers, this transaction offers tremendous opportunities for a producer of high-quality products like Primo."

"We look forward to being part of JBS and capitalising on its international distribution network."

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Image: Primo Group is one of the largest producer of ham, bacon and smallgoods in Australia and New Zealand. Photo: courtesy of Gualberto107/freedigitalphotos.net.