JBS to buy Australian pork breeder and processor Rivalea

Brazilian meatpacker JBS SA announced on 8 June that it agreed to purchase Australian pork business Rivalea from Singapore-listed QAF Ltd in a deal valued at $135 million.

In a securities filing, JBS said it had agreed to acquire all shares of Rivalea Holdings Pty Ltd and Oxdale Dairy Enterprise Pty Ltd from food group QAF. The operations account for 26% of hogs slaughtered in Australia, making JBS the market leader in the segment once the deal is closed, the filing said.

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.

The acquisition of Rivalea will allow JBS 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.

“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,” adds Brent Eastwood, CEO of JBS Australia.

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.

Pig

Tags: Australia, pork, Rivalea