Itoham Yonekyu: New Zealand beef packer Greenlea to become a wholly owned subsidiary

Research evidence excerpt

Itoham Yonekyu: New Zealand beef packer Greenlea to become a wholly owned subsidiary

Global Research

19 June 2026ab

ITOHAM YONEKYU Equities

JapanNew Zealand beef packer Greenlea to become a

wholly owned subsidiary Food Products

12-month rating Sell

12m price target ¥4,500A large but apparently inexpensive acquisition

Itoham Yonekyu Holdings announced at 12:00 on 18 June that it will acquire all shares

of New Zealand's Greenlea Group Limited through its consolidated subsidiary, ANZCO Price (18 Jun 2026) ¥4,715

Foods Limited. Greenlea is a beef packer with a business structure similar to ANZCO. The RIC: 2296.T BBG: 2296 JP

acquisition price is approximately NZD800mn (approximately ¥76bn). The acquisition

will be debt-financed, with the post-acquisition net debt-to-equity ratio likely to expand Trading data and key metrics

to 0.5X. Past performance implies an EV/EBITDA multiple of approximately 9X. Rather 52-wk range ¥6,450-4,670

than through a fund or other intermediary, the deal was initiated by the founding family Market cap. ¥268b/US$1.67b

of Greenlea, who approached ANZCO. Compared to other recent global M&A Shares o/s 56.8m (ORD)

transactions, the acquisition multiple appears attractive in our view, leaving us the Free float 46%

impression of the deal being a good one. With this acquisition, ANZCO and Greenlea on Avg. daily volume ('000) 214

a combined basis appear likely to account for 25% of New Zealand's total beef Avg. daily value (m) ¥1,130.9

processing volume, expanding to a scale rivalling the country's leading firm, Silver Fern Common s/h equity (03/27E) ¥304b

Farms. P/BV (03/27E) 0.9x

Net debt to EBITDA (03/27E) 1.7x

Even with goodwill and intangible asset amortization, a positive profit

contribution appears likely EPS (reported, basic) (¥)

UBS Cons.