January 29, 2015

Top Australian beef processor and exporter, Bindaree Beef, is seeking a strategic investor to allocate $100 million to the business to fund an increase in production and expansion into new markets. First round bids are being called for late February, as industry advisors have placed a valuation of between $400 and $500 million on the company, although Bindaree and its advisors are pushing for a higher valuation. Bindaree is a top-five red meat processor in the country with a capacity of 1,300 head of cattle per day and also operates a Sydney-based trading arm that supplies beef, pork, veal, lamb, and poultry to more than 40 countries. Many believe that the search for a strategic investor could very well lead to a full acquisition of the company based on growing beef consumption in emerging economies, especially in China, the difficult barriers to entry into the industry, and Bindaree’s scale of production and its portfolio of brands. The announcement from Bindaree comes as London-based Terra Firma is reported to be considering selling its stake in Consolidated Pastoral Co., Australia’s largest privately owned beef producer, after being approached by interested Chinese parties.

Read the article

To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service