$600M acquisition of CPC by British investors confirmed
CPC has confirmed it will be bought out by its founding investment firm, British-based Terra Firma
Guy Hands, founder and owner of the British-based investment firm Terra Firma, is working with investors and management on the acquisition of Northern Australia-based, Consolidated Pastoral Company (CPC). The deal is valued at AU$600mn for CPC’s 300,000 head of cattle on top of pre-existing assets.
CPC was, until recently, one of Australia’s largest private livestock companies but has downsized since Terra Firma, a founding investor in the company, decided to sell down the company as of March 2018.
Over the last 12 months, CPC has sold off nine of its cattle stations around the Queensland and Northern territories, for AU$310 million. The latest proposal would see Hands and CPC’s management take leadership of the remaining 3.5 million hectares of land and the head of cattle across the region, as well as two feedlots in Indonesia.
Troy Setter, Chief Executive of CPC has said the deal would not have a huge impact on the livelihoods of CPC’s stations and employees. "In terms of operations on the stations, it would be business as usual," he said. "We continue to work out ways to maximise beef production, get the most out of our properties, and care for our people and livestock.” He added: “Guy Hands has worked across multiple industries in finance and investing, and has a real connection, commitment and passion to agriculture in Australia."
Despite a third of CPC’s assets having being sold off, Setter said CPC’s remaining assets would still be significant, noting "the thematic of growing demand for food, particularly high-quality Australian beef, and also the competitiveness of Australian agriculture was really appealing to Guy Hands and his family," Setter said.
In a statement issued by CPC, Hands said "CPC is a high quality, well run business with a strong position in a large and growing industry. Its operations are close to major beef-consuming markets," he said. "I am personally very excited about the future of CPC and delighted to be partnering with the management team of CPC."
No definite time frame for the deal has been made but Setter did say, "Over the next few months we will be working with the Hands family, the CPC management team and also some of the other investors to put the deal together."
Seo JungJin: Who is EY’s World Entrepreneur of 2021?
Seo JungJin, founder of biopharma firm Celltrion, which most recently developed an antibody treatment for COVID-19, has been named the EY World Entrepreneur of the Year 2021, becoming the first South Korean in the award’s 21-year history.
Regarded as one of the world’s most prestigious business awards program for entrepreneurs, the EY Entrepreneur of the Year celebrates visionary and innovative leaders from across 60 countries who are transforming the world and fostering growth.
JungJin, who is now honoroary chairman of Celltrion Group, was up against a worthy cast of entrepreneurial competitors, taking the crown from among 45 award winners across 38 countries and territories.
Speaking during the virtual event, JungJin described his own interpretation of entrepreneurship as something that brings together “a group of people toward a common vision, embracing challenges as opportunities and committing oneself to contribute to the greater good”.
Why was JungJin crowned King Entrepreneur?
A South Korean native and now 63 years of age, JungJin founded biopharmaceutical firm Celltrion in 2003. In the nearly two decades since its founding, Celltrion has lived up to its goal of advancing health and welfare for all by developing ground-breaking drugs to treat autoimmune disease, various forms of cancer and, most recently, COVID-19.
The company, which JungJin started with just US$45,000 and five of his colleagues, has since growth to more than 2,1000 employees with sales permits in more than 90 countries and revenues exceeding US$1.69bn.
According to the panel, JungJin’s story is a shining example of the power of an unstoppable entrepreneur to change the world with the pandel moved by both his incredible story and his purpose-driven leadership, innovative mindset and entrepreneurial spirit.
Described by the chair of the EY judging panel Rosaleen Blair as “representing everything an unstoppable should be” from taking on the world’s biggest health care challenges to consistently creating long-term value for his company, JungJin’s story is one of incredible tenacity and perseverance that the judging panel felt most represented the entrepreneurial spirit.
“He’s taken breathtaking risks, both personal and professional, to found Celltrion and grow it into one of the world’s leading biopharmaceutical companies,” says Stasia Mitchell, EY Global Entrepreneurship Leader. “His passion for creating affordable, life-saving health care and flair for tackling global problems has led to many treatments that have helped millions of people worldwide and was especially evident this past year through the creation of a COVID-19 antibody treatment.”
How did JungJin get there?
JungJin's entrepreneurial journey started at an early age when he worked as a taxi driver to get himself through Konkuk University in Seoul, South Korea. After studying industrial engineering, he rose through the ranks of Daewoo Motor Co. before losing his job amid the carmaker’s financial troubles following the 1997 Asian economic crisis.
Following this, JungJin started collaborating with colleagues to explore business opportunities in different industries, though none delivered lasting success. The turning point came after he attended a talk hosted by renowned scholars, which inspired him to focus on the biopharmaceutical sector.
And so he founded Celltrion with just US$45,000 of his savings. The launch of Remsima, credited with being the world's first antibody biosimilar, quickly moved Celltrion up the ranks of the country's fairly underdeveloped pharmaceutical sector. Celltrion followed this success with the launch of drugs for breast cancer and lymphoma that today are being used worldwide.
With ambitions to be the world’s first in different areas, Celltrion has pioneered numerous uncharted areas to great success over the past two decades, most recently responding to the global pandemic by successfully developing an antibody treatment for COVID-19 and working to ensure a timely supply of the safe and effective treatment.
“When I first started, my vision was to help patients gain access to safe, effective and affordable medicines and thereby enhance the quality of people’s lives,” explains JungJin. “The success of Celltrion has enabled me to expand on this while finding new ways to fuel my entrepreneurial drive.”