Under the sale agreement, Parmalat Food Products Pty Ltd – a wholly owned subsidiary of Parmalat SpA – will acquire a portfolio of fresh milk assets across these regions, including the Lidcombe and Clarence Gardens manufacturing facilities, licences to market brands and distribution networks in NSW, SA and the Australian Capital Territory.
The manufacturing operations had combined revenue of approximately A$200m in the 12 months to 30 June 2008, and tangible assets of around A$60m at that date. The sale and associated brand licensing arrangements are required under divestment undertakings given by National Foods to the ACCC as part of its acquisition of Dairy Farmers last year.
Parmalat has agreed to make offers of employment to approximately 95% of employees currently working within the operations it’s proposing to acquire from National Foods. Any employees currently in roles made redundant as a result of the sale will, of course, receive their full entitlements.
National Foods MD, Ashley Waugh, said: “We’re pleased to reach agreement on the divestment of these assets following a comprehensive process. The integration of the National Foods and Dairy Farmers businesses continues to progress well and finalisation of these arrangements, which is subject to ACCC approval, will represent another important milestone in the implementation of the acquisition of Dairy Farmers.”
Source: National Foods
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