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JBS Australia Buys Primo Group

24 November 2014

AUSTRALIA - JBS has bought the global operations of the Group Primo small goods in Australia for A$ 1.45 billion ($ 1.25 billion).

The deal was conducted by JBS Australia and will be paid in cash and is still subject to approval by the Australian regulatory authorities.

Established in 1985, the Primo Group is the leader in processed as ham, sausage and bacon in Australia and New Zealand products.

It has recognised brands and market leaders such as Primo small goods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats.

The Primo Group employs more than 4,000 people and has five production plants, seven distribution centres and 30 retail stores.

With a reputation for quality, Primo Group has the latest equipment and the latest technology and the production units are an industry benchmark, according to JBS.

The projected earnings for 2015 are A $ 1.6 billion and EBITDA of A$ 150 million.

JBS estimates make around A$ 30 million in synergies from the deal, which will raise the projected EBITDA for 2015 to A$ 180 million, equivalent to a multiple of 8x acquisition of EV / EBITDA after synergies.

"In line with our global strategy of increasing our exposure to value-added products and brands, this operation with Primo, which is the largest in the industry and offers leading brands, represents an excellent opportunity to grow our business in Australia, given the high rates of annual growth of the category of food products and the ability to increase sales of Primo Group via exports," said Wesley Batista, president of JBS global.

TheMeatSite News Desk

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