Dairy producer Warrnambool Cheese and Butter (WCB) has announced that it will acquire the cheese business of Lion Dairy and Drinks in a deal worth AU$137.5m ($107m).
The acquisition will mean that the cutting, wrapping, distribution and marketing of cheese brands such as Coon, Cracker Barrel, Mil Lel and Fred Walker will be taken over by Warrnambool, The Daily Telegraph in Australia reported.
Warrnambool will be able to “increase its presence in [the] consumer branded everyday cheese products segment in Australia, with strong market positions in this segment,” the company claimed. The deal will lead to the transfer of some of the country’s best known cheese brands between Japan-based Kirin Holdings – owner of Lion Dairy and Drinks – to Canadian dairy company Saputo, which operates Warrnambool.
It also represents a progression in Saputo’s aggressive growth strategy, as Warrnambool CEO David Lord told the country’s public broadcaster: “They’ve been very clear about this,” he said.
“Growth for the benefit of WCB is something that Saputo wants to achieve. Where the right opportunities arise, I think we’ll see… WCB, supported by Saputo, being very active in evaluating those opportunities, and where the right ones exist, move forward on it.”
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