JBS agrees to acquire Big Frango, Primo Group
Brazilian meat and poultry processor to collectively invest $1.4 billion for two companies
JBS has entered agreements to acquire the assets of Brazilian poultry company Big Frango and Primo Group, a leading producer of ham, bacon and small goods in Australia and New Zealand. JBS will collectively pay about US$1.4 billion for the two companies.
JBS plans to purchase Big Frango
JBS, through its subsidiary JBS Aves Ltda., announced November 20 that it intends to purchase the Big Frango Group for an estimated BRL430 million (US$165.8 million).
The Big Frango Group is one of the largest groups in the poultry sector in the Southern region of Brazil, with more than 49 years of experience and a processing capacity of 460 thousand birds per day in two processing facilities with license to export to the major global markets, and with annual sales of more than BRL1billion (US$385 million). In this context, this acquisition represents an important step to strengthen JBS Foods position in the Brazilian and international consumer market of poultry and poultry products.
Big Frango is presently owned by AMSE02, which acquired the poultry processor as a result of a debt restructuring process and corporate reorganization promoted between the former owners and shareholders of Big Frango Group.
The proposed acquisition is pending regulatory approval.
JBS offers to buy Primo Group
JBS, through its subsidiary JBS Australia, has announced its intent to purchase Primo Group for an amount of AU$1,450 million (US$1,250 million). The transaction will be paid for in cash and is subject to approval of the Australian regulatory authorities.
Established in 1985, Primo Group has a portfolio of well recognized and highly regarded brands including Primo Smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats. The business currently employs in excess of 4,000 employees and operates from five manufacturing plants, seven distribution centers and 30 retail shops. Recognized by its high quality standards, Primo Group operates
"This acquisition is strongly aligned with our global strategy to expand our presence in the value-added product category and well-known brands. 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," commented Wesley Batista, Global CEO of JBS.