Affinity Buys Meat Firm

Pan-Asia buyouts fund Affinity Equity Partners has acquired a majority stake in Australian meat products firm Primo Smallgoods in a deal that values the company at A$740 million ($758 million), Reuters reports. Affinity will take 70 percent of the firm, with the Lederer family that founded Primo retaining 30 percent, said Reuters.

Reuters – Pan-Asia buyouts fund Affinity Equity Partners has acquired a majority stake in Australian meat products firm Primo Smallgoods in a deal that values the company at A$740 million ($758 million), a source with direct knowledge of the matter told Reuters on Tuesday.

Affinity will take 70 percent of the firm, with the Lederer family that founded Primo retaining 30 percent, said the source.

Pan-Asia buyouts shop Affinity submitted a final bid for the firm in July, backed by financing of about A$580 million. The leverage multiple on the debt is 3.5 times, the source said.

Primo, which has contracts with Coles and Woolworths , has projected 2011 earnings before interest, tax, depreciation and amortisation of A$125 million, the source said.

Macquarie Bank was the sellside adviser on the deal. Affinity declined to comment. ($1 = 0.976 Australian Dollars) (Reporting by Stephen Aldred; Editing by Will Waterman)