Joyvio Group set to expand business
China’s Joyvio has bought Chilean fish business Australis Seafoods in a deal that values the salmon supplier at US$880m.
Joyvio has agreed to buy 94.47% of Australis. Meanwhile, Australis produces and markets both freshwater and saltwater-stage salmonids. The freshwater stage, involves genetic development, reproduction and incubation. The saltwater stage, involves fattening, processing and marketing salmon.
Moreover, the company produced approximately 64,000 metric tons of salmon in 2017, representing 9% of total production in Chile. Last year, it reported sales of $399m and a net profit of $73.40m.
However, demand for products such as salmon is increasing in China.
In 2017, Australis recorded revenue of US$399m and a net profit of US$73.4m.
International food brand status
Joyvio has assets across protein, fruit and processed food.
In a mission statement, Joyvio Group ascertain, “It is committed to becoming a new generation of integrated international food brand group trusted by Chinese consumers.”Joyvio
Furthermore, they highlight that, “Obtaining the upstream salmon resources will aid and strengthen the seafood businesseses brand and market influence of Joyvio Group, improving its cash returns and profitability. As the most important strategic market of Joyvio Group, [China] has a great room for its consumption growth both in width and depth. The existing domestic and overseas presence and resources of Joyvio Group will generate synergies with [Australis] in a number of dimensions and enable [Australis] to achieve faster and better corporate development.”
In addition, “the acquisition of global high-quality marine protein resources is significant. Leading to upgrading China’s food consumption and the complementary advantages between China and Chile under the “Belt and Road” initiative.”
Source: Andy Coyne