JBS Australia agrees $175m deal to buy pork producer Rivalea

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Meat and food processing bigwig JBS Australia is set to significantly increase its pork interests with the acquisition of Rivalea Australia.

It is understood JBS has signed a $175 million deal to buy the integrated pork business from its Singaporean owner QAF Ltd, after an auction run by Rabobank.

JBS is expected to seek to expand Rivalea, which has about 1000 employees across NSW and Victoria, and increase the production of pork in Australia for the local market.

The deal would significantly bolster JBS’ footprint in Australian pork breeding, fattening and processing, and add to its existing operations as the owner of smallgoods brand Primo.

The deal is subject to ACCC and FIRB approval. The Brazilian meat company is expected to argue it has a strong track record growing Australian food companies, including Primo and Rockdale Beef.

The sale ends QAF’s 20-year association with the business, which has been called Rivalea Australia since 2009. The business was established by US agriculture player Bunge in 1971 in southern NSW and has grown to become the country’s largest piggery operator and pig meat processor.

Rivalea reported close to $400 million revenue and $37.4 million EBITDA in the year to December 31, according to data firm IBISWorld.

For JBS, the deal comes only one week after it had to shut down its Australian operations because of a cyber attack.

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