Meat giant JBS acquires Huon

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Tasmanian salmon producer valued at approximately A$425 million (US$314 million).

Huon Aquaculture Group announced in a press release today that it has entered into a deal with an Australian subsidiary of JBS under which it is proposed that JBS will acquire 100 per cent of the Tasmanian salmon producer for a cash consideration of $3.85 per share. The deal values Huon at approximately A$425 million (US$314 million).

The world’s largest meat processing company by sales volume, JBS has operations in the United States, Australia, Canada, Europe, Mexico, New Zealand and the UK.

Although there has been reports of interest from a private equity group, in the absence of a superior proposal, the Huon board unanimously recommended that Huon shareholders vote in favour of the scheme.

Huon’s Chairman, Mr Neil Kearney, stated: “Having fully considered a range of alternatives as part of a comprehensive strategic review process, the Board believes this transaction provides Huon shareholders with an opportunity to realise significant value for their shares. The Scheme provides certainty for Huon shareholders and a compelling premium in cash to recent trading prices for Huon shares.”

JBS Australia’s President and Chief Executive Officer, Mr Brent Eastwood, said: “Our acquisition of Huon enables us to further grow our Australian protein business and strengthen our presence with consumers and customers. We look forward to continue growing on the leading salmon business Huon has created and working with its employees, customers and stakeholders to help the company realise this next phase of growth.”

The Scheme is subject to limited conditions and is not subject to financing or due diligence.