DIVERSIFIED Western Australian food and agribusiness company, Craig Mostyn Group will purchase large WA beef and lamb processor and exporter, V&V Walsh in a staged buyout over the next five years.
In a deal described as an ‘historic commercial partnership’, 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.
The two businesses already have many synergies and the integration would enable greater efficiencies and a critical mass in a competitive market, both locally and overseas, an announcement issued yesterday said.
Craig Mostyn Group is a diversified food and agribusiness company operating across Australia, servicing customers and suppliers both domestically and overseas. The company has operated in the Australian agribusiness sector for almost a century and is a significant exporter of pork, seafood and beef, lamb and poultry by-products including meatmeal and tallow into Asia.
CMG’s trading company is one of the leading suppliers of pork into the West Australian market with supply contracts to some of Australia’s biggest supermarket retailers as well as well as operating the highly successful Linley Valley Pork brand.
V&V Walsh is a family owned and operated business since 1957, and is one of the largest meat processors and exporters in Western Australia, specialising in lamb and beef processing from its substantial meat processing facility in Bunbury. Daily capacity is around 3500 lambs and sheep, half of which is boned and packed on-site, and 400 beef. VVW also owns and operates the highly successful Amelia Park MSA-backed beef and lamb brands.
In June this year, VVW launched its Amelia Park lamb range in China, in what was believed to be Australia’s first branded chilled sheepmeat product on the Chinese market. The processor is also approved to supply chilled beef as well as frozen beef, sheep and goat meat into China.
Announcing the CMG/Walsh deal, CMG chair Jim Kennedy said during the first five years, V&V Walsh would maintain its existing management team, reporting to a new joint board of directors. The new board will include newly appointed CMG chief executive Patrick Walsh, and non‐executive director Rob Bransby. The two companies will jointly employ more than 1400 Western Australians.
“We believe that the phased acquisition makes a lot of sense for both parties,” Mr Kennedy 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,” he said.
V&V Walsh chief executive and part owner, 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 sixty 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,” Mr Walsh said.
“Also, we see this as the opportunity for two great companies to come together to grow jobs and exports for WA.”