27/11/2017 - 16:05

CMG to acquire V&V Walsh

27/11/2017 - 16:05

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Two of the state’s major agribusiness operators have announced a phased merger, with Craig Mostyn Group moving to full ownership and control of V&V Walsh over the next five years.

CMG to acquire V&V Walsh
Jim Kennedy says V&V Walsh will maintain its existing management team during the first five years.

Two of the state’s major agribusiness operators have announced a phased merger, with Craig Mostyn Group moving to full ownership and control of V&V Walsh over the next five years.

In a staged transaction, CMG will acquire V&V Walsh to create a major commercial platform to produce food for the Australian market, as well as significant export income for Western Australia.

CMG is one of the leading suppliers of pork into the WA market with supply contracts to some of Australia’s biggest retail players, as well as operating the highly successful Linley Valley Pork brand.

V&V Walsh is one of the largest meat processors and exporters in the state and specialises in lamb and beef processing from its substantial meat processing facility in Bunbury.

CMG chairman Jim Kennedy said V&V Walsh would maintain its existing management team during the first five years, reporting to a new joint board of directors that would include newly appointed CMG chief executive Patrick Walsh, and non‐executive director Rob Bransby.

“We believe that the phased acquisition makes a lot of sense for both parties,” he said.

“The transaction allows us to grow in Western Australia while leveraging our capability in managing the meat supply chain, developing new products and extending into new markets.

“Importantly, these businesses already have many synergies and the integration will enable greater efficiencies and a critical mass in a competitive market both locally and overseas.”

V&V chief executive Peter Walsh said the phased sale provided for succession and gave a basis for growth.

“Importantly, this deal means a business developed here in WA over 60 years ago will remain in Australian ownership,” he said.

“We see the Craig Mostyn Group as sharing our vision for a strong, WA-based agribusiness with enormous potential to grow – especially considering the opportunities in the rapidly developing markets in South‐East Asia and China.

“Also, we see this as the opportunity for two great companies to come together to grow jobs and exports for WA.”

The two companies will jointly employ more than 1,400 Western Australians.

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