Saputo has completed the acquisition of the specialty cheese business of Lion Dairy & Drinks for AUD $280 million ($191.7 million) on 27 October, despite concerns that were raised earlier this year.
Plans of Canadian dairy company Saputo to buy the speciality cheese business of Australia’s Lion Dairy & Drinks, a unit of Kirin Holdings, were initially announced in April 2019.
The deal will see Saputo acquire Lion’s speciality cheese portfolio, marketed under a range of brands including South Cape, Tasmanian Heritage, Mersey Valley and King Island Dairy, as well as two manufacturing facilities in Burnie and King Island, Tasmania which together employ approximately 400 people.
However last August, Australia’s competition watchdog raised concerns about Saputo’s proposed acquisition, with fears that Tasmanian dairy farmers will be paid lower prices for their raw milk.
The acquisition has been completed on a cash-free and debt-free basis and will enable Saputo’s Dairy Division in Australia to further diversify its product offering, adding to and complementing its current activities.
© FoodBev Media Ltd 2019