Cheese firm Bega has entered into an agreement to acquire Australian company Lion Dairy & Drinks for AUD 560 million (USD 412 million).
The news follows the announcement that the previously-announced sale of the business unit to Mengniu would not proceed.
Lion Dairy & Drinks’ core business is the manufacture, marketing, sales, and distribution of milk based beverages, yoghurt, chilled juices, cream and custards, and milk. It is also described as Australia’s largest national cold chain distribution network, supplying foodservice and convenience stores.
As a result of the acquisition, Bega will expand its portfolio to include brands such as Dairy Farmers, Pura, Yoplait, Juice Brothers and Big M.
Bega executive chairman Barry Irvin said: “We are delighted to announce this acquisition which we believe will create significant value for shareholders. The acquisition delivers important industry consolidation and value creation with synergies across the entire supply chain. The expanded product range, manufacturing and distribution infrastructure and brand portfolio realises our ambition of creating a truly great Australian food company”.