Mead Johnson Nutrition has agreed to acquire certain spray drying and finishing facilities in Australia from Bega Cheese, allowing it to expand its business in China.
The deal builds on the existing relationship between Mead Johnson and Bega, which has been a certified distributor for the company’s products since 2009.
Last month, Mead Johnson agreed to be bought out by consumer goods giant Reckitt Benckiser for $17.9 billion.
Mead Johnson president and chief executive officer Kasper Jakobsen said: “We believe that supply chain flexibility is important in the paediatric nutrition category. This acquisition further strengthens our ability to protect and expand our growth in China by creating both additional capacity and the ability to adapt to a changing regulatory environment.
“In our drive to become even more consumer-centric, this move also enables us to better respond to evolving consumer preferences and to compete effectively in additional market segments in China.”
And Mead Johnson senior vice-president of global operations, Jeff Jobe, added: “Bega is known the world over for its pure, high-quality dairy sourcing and its environmentally responsible operations. These outstanding facilities, with which we are very familiar, are a perfect fit for our global supply chain network, which is built on our uncompromising commitment to scientific rigour and product quality.”
The transaction is expected to close in the second quarter of 2017.
© FoodBev Media Ltd 2024