Bega Cheese is expanding its reach by buying a Western Australian facility for $250 million.
The company is purchasing Saputo Dairy Australia’s Koroit facility, which currently processes about 300ML of dairy products per year.
Bega expects the facility to generate about $20m at its current intake per year.
Items produced include milk, retail butter and milk powders.
As part of the transaction, Bega and Saputo entered into agreements whereby Saputi is required to gurantee the supply of 300ML milk per year until June, 2020. The transaction is subject to ACCC approval.
Bega CEO Paul van Heerwaarden said the Koroit facitily would give Bega operational flexibility its other milk processing sites.
It would also provide the cheese company with a better presence in Western Victoria, said van Heerwaarden.
“The acquisition will support the continued growth of our core dairy business and provide domestic and export customers with an expanded range of products.
“We welcome the 108 employees of Koroit to Bega Cheese.”
Bega executive chairman Barry Irvin said it was a delight to have acquired the dairy facility.
“Bega Cheese has been collecting milk in Western Victoria for almost 1 years and the opportunity to acquire such significant and quality infrastructure will cement our presence in one of the strongest dairy regions in Australia.
“We will work closely with dairy farmers to grow supply to the Koroit Facility. This is another important step in creating an Australian owned dairy and food company that is competitive and efficient in Australia and the world.”
Source: Foodmag