JBS SA officially announced its plan to acquire large Australian beef and pork processor, Primo Group, along with also purchasing the third largest recognized fresh chicken producer, Big Frango, in Brazil.
In a conference call, Wesley Batista, JBS global chief executive officer stated the two acquisitions strongly aligned with the company’s strategy to expand its presence in the global marketplace. Each company gives JBS new export opportunity, especially in the Asia.
The Primo Group will be purchased through its JBS Australia subsidiary for $1.25 billion. The company anticipated to gain $1.38 billion in annual revenue in Australia as a result of the deal, and projects synergies of around $25.93 million.
Domestically, Primo Group currently holds 50% of the market share in Australia. Its brand portfolio includes Primo Smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats. The Primo acquisition will make JBS the leading player in New Zealand in the ham and bacon categories.
The transaction will be paid for in cash, and is subject to approval by Australian regulatory authorities.
Furthermore, JBS also announced its additional acquisition of Big Frango Group, a local poultry processor in Brazil. Through its JBS Foods subsidiary, the company purchased Big Frango for $167.15 million, which is subjected to approval by Brazil's anti-trust regulatory body, CADE.
In May, JBS confirmed its acquisition of Big Frango’s hatchery, farm and feed mill with plans to invest $9 million to expand the site.
The recent announcement will complete the total transition of all capital shares held by AMSE02 Participações Ltda in Big Frango Group in addition to the two processing facilities and farm assets.
As one of the largest groups in the poultry sector in southern Brazil, Big Frango has 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 $390 million. Big Frango is already approved to export poultry products to the E.U., China and Japan.