BINDAREE Beef announced on Tuesday that it has agreed to a merger with Sanger Australia, one of the nation's leader in meat exports.
Under the terms of the agreement, Sanger will become an independently operated, stand-along subsidiary of the combined Bindaree Beef Group. It will be a $750 million per annum organisation servicing 350 customers in 50 countries, including North and South America, China and Europe.
Bindaree Beef's JR Macdonald assumes the position of Chairman of the combined entity.
“The combined business will be a powerhouse. We have proven expertise at every step of the chain, and we are offering an integrated, quality-oriented and very efficient supply chain to customers to customers around the world," Mr Macdonald said.
"Bindaree Beef Group is well positioned to grow for at least the next 20 or 30 years. Our growing reach is great news for our suppliers, Australian farmers, who are looking for reasons to continue investing in their operations.
“Bindaree Beef Group is proud to be on the front foot of meeting the world's growing appetite for meat protein - it's a win for farmers and for Australia."
Sanger chief executive officer Graham Greenhalgh said global customers would not see any changes to Sanger’s standards, mission or focus.
“It has been our mission at Sanger to change the way meat is sold, by creating innovative value chain solutions that contribute to the growth of Australia’s rural output,” said Mr Greenhalgh.
“During a period of recent consolidation within the meat industry, we saw the
opportunity to partner with our major supplier, who supports our customers with
about 55 per cent of their combined orders.”
Bindaree Beef director John Newton saw big advantages in the new combination.
“The merger will also allow our livestock team to work more closely with the sales team to deliver better outcomes for our customers and producers,” he said.
Mr McDonald said he done business with Sanger for 42 years and with Graham Greenhalgh for 27 years.
“They have always managed our sales channel and export markets efficiently. This relationship gives us access to youth and enthusiasm whilst delivering a cost effective sales platform that we share with all of Sanger’s other long term supply partners,” Mr Macdonald said.
The merger took effect on Monday, July 6, and was a non-cash transaction between the companies.