Brazilian multinational company, JBS acknowledged as one of the worldwide food industry leaders with its headquarters in Sao Paulo and is present in 15 countries. announced on Friday August 6, an agreement to acquire 100% of Huon Aquaculture, Australia’s second-largest salmon producer and listed on that country’s stock exchange. The deal, with an implied equity value of USD 315 million (BRL1.6 billion) and an enterprise value of USD 403 million (BRL 2.1 billion), has already been approved by the controlling shareholders and is expected to be concluded by the end of 2021, with the approval of the other shareholders and the Australian authorities. with this, JBS expand its global protein platform.
“This is a strategic acquisition, which marks the entry of JBS into the aquaculture business. We will repeat what we did previously with poultry, pork and value-added products – to make our portfolio even more complete. Aquaculture will be a new growth platform for our businesses,†says Gilberto Tomazoni, Global CEO of JBS.
Vertically integrated, Huon will mark the beginning of fish production by JBS, which already processes beef cattle, poultry, pigs and lamb in plants around the world. Huon has invested more than AUD350 million over the last five years in industry leading operational infrastructure and sustainable practices in the salmon production cycle, positioning the company for sustainable growth.
Huon has 13 production sites and 3 value-added product processing units. Salmon, for example, is sold in fillets and can be found vacuum-packed at retail stores, as well as smoked products or salmon ova.
JBS already operates in Tasmania, with a beef cattle processing unit at Longford. This is the Company’s second acquisition in Australia this year. In April, it purchased Rivalea, leader in pig production. Since 2014, the company has been the owner of Primo Smallgoods, which has a portfolio of strong brands. JBS has been in the country since 2007, when it acquired the operations of Swift. “There is huge complementariness with the other business we carry on in Australia, including customer relationships, distribution and marketingâ€, says Brent Eastwood, CEO of JBS in Australia.
In March, Seara, in Brazil, announced that it was beginning to distribute products in the fish and seafood segment, with products like salmon, tilapia and shrimp, among others. Now, following the acquisition in Australia, JBS will have its own production. “Huon has 33 years of experience in sustainable production, superior technology, and superior quality products widely recognized by the Australian consumer, in an industry with excellent growth prospects worldwideâ€, says Tomazoni. Beside the significant share of the Australian market, 15% of Huon’s production is channeled to exports.
According to the FAO, in the next ten years the per-capital consumption of fish is slated to grow by 5% globally. In Oceania, this rate should reach 7%, and 15% in China. Global per-capita fish consumption exceeds that of poultry, pork or beef. Per annum, it exceeds 20 kg, according to the FAO. For 1.5 billion people, fish accounts for 20% of average protein consumption, while this figure exceeds more than 15% for 3 billion. According to projections of the FAO and the OECD (the Organization for Economic Cooperation and Development), already by 2023 aquaculture-produced for human consumption will exceed what is caught from river and sea fishing.
The operations of Huon stand out for the monitoring of the activities at its production locations. In 2014, it launched an interactive panel on sustainability, at the time an unprecedented initiative in world terms. Today, the tool includes data on the company’s performance, investment in research, as well as information about the fauna in the water courses with which Huon interacts. Circular economy is also a company priority. Waste from processing becomes feed, titbits for pets and ends up on the compost heap, becoming the basis for fertilizer.
