Harmony sells stake in Kilcoy, Harvey Beef

Jon Condon, 02/05/2012

Recent rumours that the Kilcoy Pastoral Co export abattoir in Queensland and the Harvey Beef abattoir in Western Australia have been sold have proved wide of the mark – but as is often the case with such matters, the truth is somewhere not far distant.

Beef Central can confirm this morning that major shareholder, Harmony Investment Fund, has sold its majority stake in both meatworks to another Asian-based international managed investment fund, Pacific Alliance Group (PAG).

It is understood that Singapore-based Harmony Capital Management, through its Harmony Investment Fund, owned 80 percent of the Kilcoy business, with Elders retaining the remaining 20pc stake, despite earlier attempt to sell its share as part of a broader asset liquidation.

Kilcoy Pastoral Co has confirmed that the PAG Managed Fund has taken ownership of the Harmony Investment Fund, which is the ultimate majority owner of KPC (and in parallel, of Harvey Beef in WA). All other ownership interests in KPC remain unchanged.

Kilcoy chief executive Tony Munns said there would be no change in the conduct of KPC’s business or in the directors or management of KPC as a consequence of the event. Operationally, KPC would remain as specialist grainfed processor, he said.

According to the company’s website, PAG (formerly known as Pacific Alliance Group) was founded in 2002, and is now one of the largest Asia-focused alternative investment managers with funds under management across private equity, real estate and absolute return strategies. It targets industry sectors including consumer retail, food and beverage, financial institutions, industrials and transportation, and energy and resources. PAG has 260 staff working across Asia.

Harmony bought a majority share of WA’s troubled Harvey beef business from the original family owners in 2006, within days of making a similar majority shareholding acquisition of Kilcoy Pastoral Co in southeast Queensland.

Harvey Beef is WA’s largest beef producer and exporter, with a history dating back to 1919. Currently about 70 percent of Harvey’s turnoff is exported to about 30 customer countries, with major destinations including Japan, Korea, Indonesia, Taiwan, the Middle East and the US.

The plant currently processes about 145,000 grass and grainfed cattle each year, employing about 300 staff.

Kilcoy Pastoral Co is a dedicated grainfed, export-focussed plant located about an hour north of Brisbane. It has capacity to process 285,000 head per year, last year processing around 250,000 head, and employing 750 staff.




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