AUSTRALIA – The Kimberly Meat Co., a prominent beef processor in northern Western Australia, has been bought out of administration by a Canadian investor, the Alberta Investment Management Co. (AIMCo).
The firm, headquartered in Edmonton, Alberta, has confirmed its acquisition of the meat company, along with its associated assets, which include the 475,000-hectare Yeeda cattle station and employee housing properties in Broome and Derby.
The assets collectively known as the Yeeda Aggregation were not publicly valued in the transaction.
The sale follows Kimberly Meat Co.’s entry into voluntary administration in February, with Korda Mentha, a Sydney-based accountancy firm, appointed to oversee the process, as noted by the Australian Securities and Investments Commission (ASIC).
AIMCo, which manages over C$160.6 billion (US$118.2 billion) on behalf of pension funds, insurers, and local governments, highlighted Kimberly Meat Co.’s significance as the only export-accredited beef processing facility in northern Western Australia.
The Canadian firm’s latest acquisition adds to its existing cattle breeding operations in Western Australia, which include Yougawalla Pastoral Co. and Argyle Cattle Co., purchased last year.
AIMCo emphasized that integrating Kimberly Meat Co. with its current operations will boost the robustness and flexibility of its supply chain, allowing for increased capacity and value creation.
Ben Hawkins, AIMCo’s executive managing director, stated that the acquisition presents an opportunity to develop a vertically integrated beef production and processing enterprise.
While Kimberly Meat Co.’s creditors have approved the deal, the acquisition is pending approval from Australia’s Foreign Investment Review Board.
According to Australian media, Kimberly Meat Co. founder Mervyn Key sold his 45% stake in the company and its affiliates last year to Asia Debt Management Capital, a Hong Kong-based investment firm.
Following this sale, ADM Capital’s Australian unit held an 80% stake, with the remaining shares owned by an unnamed family investment firm with offices in the US and Argentina.
Further complicating the company’s situation, an investigation by the Australian Broadcasting Corporation (ABC) revealed that Yeeda Pastoral Company, which includes the Yeeda Station and Kimberly Meat Co., was indebted to the tune of more than A$5 million (US$3.3 million) to various creditors across northern Australia.
Additionally, the Western Australian government launched an investigation last year into the deaths of over 400 beef cattle in 2022 and the illegal disposal of abattoir waste associated with the company.
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