Bega Cheese has purchased Saputo Dairy Australia’s dairy processing facility in Western Victoria for $250million.
Announced on July 18, the deal came four-and-a-half months after Saputo said it was discussing plans to sell the milk plant in Koroit to address concerns from Australia's competition watchdog about its buyout of Murray Goulburn Cooperative.
The Koroit facility has 108 staff members and processes about 300ML of milk into bulk and retail butter, commodity and retail milk powers and growing up milk powder.
“Importantly the acquisition will support the continued growth of our core dairy business and provide domestic and export customers with an expanded range of products,” Bega Cheese CEO Paul van Heerwaarden said in an ASX announcement.
Bega Cheese’s executive chairman Barry Irvin said the acquisition would cement the company’s presence in “one of the strongest dairy regions in Australia”.