JBS S.A. (via JBS Australia Pty Limited) → Huon Aquaculture Group Limited
completedBrazilian meat processing giant JBS S.A. entered a Scheme Implementation Deed on 6 August 2021 to acquire 100% of Tasmanian salmon farmer Huon Aquaculture Group via its Australian subsidiary, for cash consideration of A$3.85 per share, valuing Huon's equity at approximately A$425 million on a fully diluted basis. The deal marked JBS's entry into aquaculture and completed in November 2021 after overwhelming shareholder approval.
JBS, the world's largest meat processor, used the acquisition to diversify into aquaculture/seafood protein for the first time, gaining an established Tasmanian salmon farming and processing operation as a platform to expand into the growing global demand for seafood protein alongside its core beef, pork and poultry businesses.
Huon's board and founding Bender family recommended the offer, which represented a 61% premium to the undisturbed share price, as compelling value following a strategic review, giving shareholders certainty and cash exit after a period of depressed salmon prices and industry consolidation pressure (including a rival approach from Canada's Cooke Inc. for competitor Tassal around the same period).
Huon Aquaculture shares jumped sharply on the offer, given it represented a 61% premium to the A$2.39 undisturbed closing price (26 February 2021), a 43% premium to the 3-month VWAP, and a 38% premium to the A$2.79 close on 6 August 2021 immediately before announcement.
Press framed the deal as a landmark move by a global meat giant into fish/aquaculture protein, and noted early friction when major shareholder Andrew Forrest threatened to vote against the deal absent stronger animal welfare commitments, before backing it once JBS reaffirmed existing "no pain, no fear" farming principles.
Deal mechanics
MinterEllison (legal advisor to JBS)
All-cash scheme of arrangement at A$3.85 per share, plus a fully franked special dividend of up to A$0.125 per share declared immediately prior to implementation.
Subject to FIRB approval, which JBS secured, and shareholder/court approval under the scheme process; shareholders approved with 99.8% in favour. Scheme became effective 4 November 2021, with implementation and payment on 17 November 2021 (some sources cite 8 November as the implementation date).