15/06/2009 - 15:42

Harmony Capital acquires Harvey Beef

15/06/2009 - 15:42

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Private equity fund Harmony Capital has moved to full ownership of the state's largest meatworks, Harvey Beef, after buying out partners Elders and Stark Investments.

Private equity fund Harmony Capital has moved to full ownership of the state's largest meatworks, Harvey Beef, after buying out partners Elders and Stark Investments.

Under an agreement, Elders said it sold its 20 per cent interest in Harvey Beef for $700,000.

Elders, formerly Futuris, has been offloading some of its assets including the sale of shareholdings in Australian Agricultural Company, Webster, Amcom and citrus operations and fodder interests.

Elders is also in the process of selling its 20 per cent interest in Kilcoy Pastoral Company, located in Queensland.

Elders' shareholding in Harvey Beef and Kilcoy had a collective book value of $10 million.

Details of how much Stark sold its stake in the company have not been released.

Three years ago, Harmony and Stark, through joint venture company Harvey Industries Group, took control of Harvey Beef, paying a reported $27 million for the operations where were previously owned by 100-year-old family business EG Green & Sons.

Around 18 months later, Elders joined them on the register.

Additionally, Harvey Beef has appointed a new chief executive, Mike Jackson, who started his role at the company this week.

"Mike Jackson has a wealth of experience in the Australian beef industry, at both an operational and strategic level, so will be a great asset for Harvey Beef," Harmony's John Nicholls said.

"Mike's commencement; Harmony's increased ownership commitment; and the recent decision by employees to accept a new, flexible collective workplace agreement all contribute to a rejuvenation of Harvey Beef.

"This is good for the company, the Harvey region and WA beef producers and consumers."

Harvey Beef has been without a chief executive for several months after former chief executive Michael Rappatoni agreed to step down.

It has been a dramatic year for Harvey Beef starting in February when the company suspended operations for about a week after a downturn in demand.

Following that, the company laid off nearly 180 employees as it conducted a review of its operations, resulting in a new collective agreement for existing workers, who initially rejected the agreement but last month voted to accept it.

 

 

The announcement is below:

 

Harmony Capital has moved to strengthen its position in the Australian beef industry, securing full ownership of the Harvey Beef business.

The company has bought out partners Elders and Stark Investments to move to 100 per cent ownership of the Harvey Industries Group, including Harvey Beef.

"Harvey Beef has enormous potential, so Harmony is pleased to buy 100 per cent ownership and control of the business," Harmony's John Nicholls said.

"The move to secure 100 per cent ownership reflects Harmony's commitment to Harvey Beef and our absolute confidence in its future."

New Harvey Beef Chief Executive Officer Mike Jackson also began his role at WA's largest processor this week.

"Mike Jackson has a wealth of experience in the Australian beef industry, at both an operational and strategic level, so will be a great asset for Harvey Beef," Mr Nicholls said.

"Mike's commencement; Harmony's increased ownership commitment; and the recent decision by employees to accept a new, flexible collective workplace agreement all contribute to a rejuvenation of Harvey Beef.

"This is good for the company, the Harvey region and WA beef producers and consumers."


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