Primo Smallgoods has been swallowed by Australia's largest meat processor, JBS Australia, for $1.45 billion.
The bacon and smallgoods company was sold to JBS Australia, the local arm of Brazilian food company JBS, by Hong Kong private equity firm Affinity and Primo's co-founder, Paul Lederer.
Affinity acquired 70.1 per cent of the company off the Lederer family - who continue to own 30 per cent - in 2011.
JBS Australia is the largest meat processing company in Australia, and Primo, which owns the Primo, Hans and Beehive brands, is Australia and New Zealand's largest processed ham bacon and smallgoods company.
“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,” Primo Group CEO, Paul Hitchcock, said.
“We look forward to being part of JBS and capitalising on its international distribution network.”
JBS CEO, 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 with strong brands 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.”
Brent Eastwood, CEO of JBS Australia described the acquisition as 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.
“We look forward to working with the management of the Primo Group to support the continued future success of this business,” he said.
The sale is the latest in a line of Australian food and beverage company foreign acquisitions including the purchase of Warrnambool Cheese & Butter by Canada’s Saputo, the sale of Peters Ice Cream to R&R Ice Cream, and PZ Cusson’s acquisition of organic yoghurt company five:am. Goodman Fielder is also preparing for its takeover by Wilmar International and First Pacific.
