JBS Australia, the largest meat processing company in Australia, has agreed to acquire Primo Group, the largest ham, bacon and small meat products producer in Australia and New Zealand.

The company, which is part of Brazil-based JBS, the biggest animal protein processing company in the world, announced on Friday that it would pay A$1.45 billion ($1.25 billion) to acquire its smaller rival.

Primo operates five processing plants across Australia and New Zealand and employs more than 3,000 people. Its brands include Primo Smallgoods, Hans and Beehive.

JBS, meanwhile, has 10 processing facilities in Australia. The company forecast "incremental annual revenue" of around A$1.6 billion ($1.4 billion) and EBITDA of A$150 million ($130 million) from the Primo deal.

The CEO of JBS, Wesley Batista, said that this acquisition was in line with his company's global strategy to expand its presence in the market for value-added products with well-known brands.

"Primo Group is the leading company in this segment with strong brands and represents an outstanding opportunity to expand our business in Australia," he added.

According to Brent Eastwood, CEO of JBS Australia, the deal will result in international growth for Primo's brands through the larger company's global sales expertise and international customer sales network.

Primo Group's CEO, Paul Hitchcock, agreed: "While it will remain very much business as usual for our employees, suppliers and customers, this transaction offers tremendous opportunities for a producer of high-quality products like Primo."

“We look forward to being part of JBS and capitalizing on its international distribution network,” Hitchcock concluded.