Meet our competition: JBS acquires over $1 billion in new assets in Australia, Brazil — The awesome power of a State sponsored enterprise
This is our competition. Sysco is selling Aspen Ridge Beef, the JBS pretend label designed to compete with companies like Ranch Foods Direct. UCCS is promoting Aspen Ridge as their locally sourced beef. JBS has a beef plant in Greeley, CO.
JBS acquires over $1 billion in new assets in Australia, Brazil
By Bob Moser on 11/21/2014
Brazil’s JBS SA announced Thursday night plans to acquire the Primo Group, the leading producer of ham, bacon and small meat products in Australia and New Zealand, as well as one of Brazil’s largest poultry processors — Big Frango.
Through its JBS Australia subsidiary, the world’s largest beef and poultry processor will acquire Primo Group for AU$1.45 billion ($1.25 billion). JBS expects gains in annual revenue of AU$1.6 billion ($1.38 billion) and EBITDA of AU$150 million ($129.65 million) in Australia as a result of the deal, and projects synergies of around AU$30 million ($25.93 million).
“This acquisition is strongly aligned with our global strategy to expand our presence in the value-added product category and well-known brands,” said Wesley Batista, Global CEO of JBS, in a statement. “Primo Group is the leading company in this segment with strong brands and represents an outstanding opportunity to expand our business in Australia, considering the annual growth in consumption of prepared products and the prospects to increase exports of convenient products from Primo Group portfolio.”
Established in 1985, Primo Group has a portfolio of recognized brands including Primo Smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats. The business currently employs more than 4,000 employees and operates from five manufacturing plants, seven distribution centers and 30 retail shops.
The transaction will be paid for in cash, and is subject to approval by Australian regulatory authorities.
In Brazil, JBS also announced its acquisition of all capital shares held by AMSE02 Participações Ltda in local poultry processor Big Frango Group. JBS will pay BRL430 million ($167.15 million) in the transaction through its subsidiary JBS Foods, which must be approved by Brazil’s anti-trust regulatory body, CADE.
The Big Frango Group is one of the largest groups in the poultry sector in southern Brazil, with more than 49 years of experience and a processing capacity of 460,000 birds per day in two processing facilities and annual sales of more than BRL1 billion ($390 million).
JBS previously confirmed in late May that it had acquired hatchery, farm and chick assets from Big Frango, with plans to invest as much as BRL20 million ($9 million) in expanding the sites over the next few years.