JBS SA announced June 8 that it has signed an agreement to acquire 100% of Rivalea Holdings and 100% of Oxdale Dairy Enterprise, together known as Rivalea, from Singapore-listed food company QAF Limited for an enterprise value of $135 million.
With an extensive product line in various categories and vertically integrated, Rivalea is a market leader in hog breeding and processing in Australia, accounting for 26% of the hogs processed in that country.
JBS said the acquisition will allow it to increase its product diversification in Australia, increasing 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.
“With the acquisition of Rivalea, JBS becomes a leader in pork processing in Australia. 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”, said JBS Global CEO Gilberto Tomazoni.
Brent Eastwood, CEO of JBS Australia, commented, “With total annual sales of circa AU$400 million (US$310 million), an EBITDA of AU$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 regulatory approvals including the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB), both in Australia.