JBS acquires Primo Smallgoods
Nov. 21, 2014
by Meat&Poultry Staff
SÁO PAULO, Brazil – JBS SA, the world's largest meat processor, announced plans to acquire Primo Smallgoods Group for $1.25 billion. The business will be acquired through JBS Australia. The all-cash transaction is subject to approval by Australian regulatory authorities.
JBS expects incremental annual revenues of approximately $1.6 billion and earnings before interest and taxes (EBITDA) of $150 million. Additionally, the company expects the deal to produce $30 million in synergies.
"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. "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."
Primo Group is a leading producer of ham, bacon and smallgoods in Australia and New Zealand. The company makes meat products under several brands including Primo Smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats. Primo Group operates five manufacturing plants, seven distribution centers and 30 retail stores. The company employs more than 4,000 workers.