Private equity firm snares Harvey Beef

Posted by Daniel Palmer on 16th June 2009

Private equity group Harmony Capital has acquired all shares in Western Australia’s largest meat processor, Harvey Beef, from Stark Investments and Elders.

The deal, which values the company at around $3.5 million, highlights the troubles faced by the firm since the $27 million purchase by joint venture company Harvey Industries Group just three years ago. In March, financial difficulties saw the struggling firm make 160 workers redundant after a new pay deal could not be reached, with the remaining workers accepting a pay cut in April.

Elders, which had a 20 per cent stake in Harvey Beef, is also looking to sell its other abattoir interest – Kilcoy Pastoral Company as they continue with their transformation program.

“Elders is set to complete another asset sale under its Agenda for Change company renewal program with agreement being reached for sale of its shareholding in the Harvey Beef abattoir,” the company said in a statement. “Under the agreement Elders will sell its 20% interest in Harvey Industries Group to Harmony Investment Fund, with proceeds of $0.7 million.”