Meat processor Bindaree Beef from Inverell in north-west NSW has merged with meat export company Sanger Australia after 40 years of close collaboration.
The merger, which took effect on Monday, was a non-cash transaction between the companies, which have worked together for years. The scrip merger instead sees Sanger take shares in the Bindaree Group.
The merged entity will create a more vertically integrated meat operation. According to The Inverell Times, the new company will be a $750 million per annum organisation servicing 350 customers in 50 countries, including North and South America, China and Europe.
Bindaree Beef's Inverell abattoir processes about 6,000 cattle a week, sourced from the New England area, and Bindaree Beef's JR Macdonald will be chairman of the combined entity.
Sanger will continue to conduct its sales, marketing and distribution operations as an independent, stand-alone subsidiary of the new company, which will be known as the Bindaree Beef Group.
“The combined business will be a powerhouse. We have proven expertise at every step of the chain, and we are offering an integrated, quality-oriented and very efficient supply chain to customers to customers around the world," Macdonald told The Inverell Times.
"Bindaree Beef Group is well positioned to grow for at least the next 20 or 30 years. Our growing reach is great news for our suppliers, Australian farmers, who are looking for reasons to continue investing in their operations."
Sanger chief executive officer Graham Greenhalgh said global customers would not see any changes to Sanger’s standards, mission or focus.
“It has been our mission at Sanger to change the way meat is sold, by creating innovative value chain solutions that contribute to the growth of Australia’s rural output,” he said.
“During a period of recent consolidation within the meat industry, we saw the opportunity to partner with our major supplier, who supports our customers with about 55 per cent of their combined orders.”