PIF-owned Salic with Minerva Foods acquires Australian Lamb Company for $258mn

By Arya M Nair, Intern Reporter
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Salic acquires Australian Lamb Company
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The Saudi Agricultural and Livestock Investment Company (Salic), a wholly-owned subsidiary of the kingdom’s sovereign wealth fund, Public Investment Fund (PIF), has joined hands with Minerva Foods for the acquisition of 100 percent shares in Australian Lamb Company (ALC) for $258.3 million.

The acquisition was done through Minerva Foods Australia, Salic’s joint venture with Minerva which was established last year in Australia. Minerva Foods is one of the leaders in the production and sale of fresh beef and its byproducts, live cattle exports and beef processing in South America.

Salic owns 30.55 percent of the share capital of Minerva Foods, which operates more than 27 slaughterhouses globally and exports red meat to more than 100 countries around the world, including the Saudi market.

Sulaiman AlRumaih_Salic Acquires ALC
Sulaiman AlRumaih
Group CEO
SALIC

“The ALC takeover is in line with its strategy to contribute to the national food security objectives through globally diversified investments in countries with a competitive advantage such as Australia, which accounts for 42 percent of global red meat exports, taking into consideration that sheep meat represents 49 percent of red meat consumption in Saudi Arabia.”

As one of the largest meat producers in Australia, ALC operates two processing facilities in Victoria State, with a capacity to process up to 3.78 million heads annually, equivalent to around 100,000 tonnes of lamb and sheep meat, serving the domestic market as well as exporting to more than 70 countries around the world.

This acquisition was another successful expansion in Australia, following the takeover of Merredin Farms in 2018 and the establishment of Minerva Foods Australia in partnership with Minerva Foods in 2021 which own and operates two processing facilities in Western Australia.

Related: UAE’s IHC offers $2.8bn to acquire stakes in Colombian food giant Grupo Nutresa


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