The Australian Competition and Consumer Commission (ACCC) is currently considering whether a public review is required for JBS S.A.’s acquisition of pig breeder and processing company Rivalea for $175 million.
JBS announced it has signed an agreement to buy 100 per cent of Rivalea Holdings and Oxdale Dairy Enterprise (together, “Rivalea”) from Singapore-listed food company QAF Limited for $175 million.
There is an alternative bidder for the business, BE Campbell, which the regulatory agency said does not require a public review.
JBS said Rivalea’s vertically integrated business with product lines across several categories would allow JBS to increase its product diversification in Australia. Rivalea accounts for 26 per cent of hogs processed in Australia.
JBS Global CEO Gilberto Tomazoni said the acquisition would result in JBS becoming the largest port processor in Australia. “It will increase the volumes of value-added products using pork meat within the Primo business, as well as opening up new opportunities for domestic and export sales of pork.
“We will add important brands to our portfolio to create strong conditions to accelerate the growth of the value-added and branded businesses in the country, in addition to strengthening our export platform,” Tomazoni said.
JBS Australia CEO Brent Eastwood said: “With total annual sales of around $400 million, an EBITDA of $37 million, two facilities and more than a thousand employees, Rivalea already has sustainability as the focus of its business strategy.
“The company sells well-known Australian consumer brands such as Riverview Farms, Family Chef and St. Bernard's that will strengthen our presence with consumers and customers.”
The acquisition is subject to relevant Australian regulatory approvals including the ACCC and the Foreign Investment Review Board.
