Sale of Monbeef

$$BDO.LiveSite.Deals.SubIndustry$$Food and drink

Established in 1998, Monbeef is a meat processor based in Cooma, New South Wales. Monbeef has a state-of-the-art hot boning plant specialising in the processing of cows and bulls, and is an accredited Halal processing plant. It currently supplies beef products to the Australian market and exports beef to 26 countries around the world, including the USA, China, Indonesia, Malaysia and Japan.

In March 2019, BDO managed the successful sale of Monbeef to S Foods Inc (a listed company on the Tokyo Stock Exchange with market capitalisation of A$1.6 billion and revenues of over A$4.2 billion). S Foods is one of the largest wholesalers, manufacturers and retailers of meat-related food products in Japan. 

Through the transaction, S Foods hopes to exploit synergies such as:

  • Widening Monbeef’s sales channel by utilising S Foods’ network
  • Establishing vertical integration where Monbeef can supply S Foods with beef products to process into other value added items, thus contributing to Monbeef’s sales
  • Transferring of S foods’ product expertise for Monbeef to produce new value-added products to increase the company’s product offering and margins
  • Providing S Foods with access to Halal products and Islamic sales network in South East Asia
  • Providing financial credibility to Monbeef. 

BDO’s role included:

  • Preparing the information memorandum
  • Liaising with potential purchasers 
  • Managing the due diligence process
  • Providing advice on commercial and financial structuring issues
  • Managing and leading negotiations
  • Providing input into the sale and purchase agreement and other necessary legal documents
  • Other matters as required to complete the transaction.
The BDO team advice was extremely valuable and they handled every step of the transaction with diligence and professionalism. They never wavered in their commitment, and they achieved an amazing outcome for all stakeholders. We very much doubt the transaction would have happened without the endless effort BDO’s put into it.