Canadian multi-national dairy processor Saputo has agreed to buy Lion-Dairy & Drinks Tasmanian speciality cheese business for about $280million.
Lion has two manufacturing facilities, in Burnie, Tasmania, and on King Island, employing about 400 people.
In a statement, Saputo said the purchase would allow the company's Australian dairy division to further diversify its product offering, adding to and complimenting its current activities.
Lion's Specialty Cheese Business produces, markets and distributes a variety of specialty cheeses under a wide portfolio of Australian brands, including South Cape, Tasmanian Heritage, Mersey Valley and King Island Dairy.
"For the twelve-month period ended on December 31, 2018, the Specialty Cheese Business generated revenues of approximately A$192 million," the Saputo statement said.
The move increases Saputo's presence in Australia, 18 months after it paid $1billion for the Murray Goulburn co-operative, and adds to the 2014 acquisition of Warrnambool Cheese and Butter.
Read more: Lion ramps up sales pitch
The transaction is subject to foreign investment approval and clearance by the Australian Competition and Consumer Commission, and is expected to close in the second half of calendar year 2019.
The purchase also follows the recent acquistion of British processor, Dairy Crest, while confirming it was still trying to sell its MG Trading stores..
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
