Dive Brief:
- JBS Smallgoods Australia, a JBS SA subsidiary, completed a 100% share capital acquisition of Primo Group, Australia's leading producer of ham, bacon, pork, and continental smallgoods.
- According to Beef Central, the Primo acquisition is "part of a global extension by JBS from fresh meat into the value-added and further-processed foods segments, where chief executive Wesley Batista said the company saw opportunity to extract greater margins than in chilled/frozen meat."
- According to JBS, the Primo business annual revenue is expected to be about A$1.6 billion, and yearly pre-tax earnings should be about A$150 million resulting from the transaction.
Dive Insight:
At the beginning of this month, JBS SA withdrew is planned initial public offering for the fourth time since first proposing the IPO in May. According to The New York Times, one source cited poor Brazilian market conditions for the withdrawal. Last week, Bloomberg reported that JBS is "considering reviving plans for an initial public offering of its U.S.-based unit as North American stock valuations rise relative to Brazil," according to two sources close to the matter. One source said that this move could take place as early as this year.