Page 71 - Food&Drink Magazine November-December 2021

PROTEIN POLYGAMY
In the first of two rather substantial acquisition bids from the protein powerhouse this year, JBS Australia said it would acquire pig breeder and processing company Rivalea for $175 million, making it the largest pork processor in Australia. The ACCC gave the idea a bit of a side-eye, saying while the businesses didn’t compete closely there could be some vertical integration issues.
For JBS, the deal would provide a strong presence in pig farming, export accredited pig abattoirs and smallgoods through its Primo brand. Rivalea accounts for around
26 per cent of hogs processed in Australia.
Due to JBS’ ownership of Primo, the ACCC was concerned it may have incentive to frustrate third-party service kills provided by Rivalea’s Diamond Valley Pork abattoir by increasing prices, offering less favourable terms, or foreclosing access.
It’s not just the ACCC that’s going to have to sign off on the proposal, the Foreign Investment Review Board will also be casting an eye over the deal.
Covering all protein bases, in August, JBS announced its acquisition of Huon Aquaculture for $425 million, which would represent the first aquaculture business for JBS globally.
Andrew Forrest, marine biology PhD in his back pocket,
expressed his opinions about the move by doubling his interest in Huon through his private investment vehicle Tattarang, effectively blocking the takeover while demanding JBS commit to animal ‘no pain, no fear’ welfare and environmental standards. JBS countered with a parallel scheme in which it would accept 50.1 per cent. Ultimately shareholders resoundingly supported the deal, including Tattarang. Two days after
the vote, the global CEO of JBS S.A. sent a letter to shareholders providing the commitments demanded by Tattarang and Forrest.
CRAFTY SALE
Meanwhile, craft alcohol brands in the Fermentum Group were saying cheers when they sold to
Lion in a deal said to be worth around $500 million (alcohol, crackers, and fish, people, it’s where it’s at).
Fermentum was established by Stone & Wood founders and its portfolio also includes Two Birds, Fixation, Little Drago and Sunly Seltzer.
Earlier in the year there was conjecture Fermentum would list on the ASX to fund expansion, including a
$50 million brewery on the New South Wales
North Coast. Founded in 2008, Stone & Wood now represents about one per cent of the Australian beer market.
(Outgoing) Lion managing director James Brindley said the brands and values of Fermentum Group made the deal attractive. ✷
MERGERS & ACQUISITIONS
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