July 18, 2018
Australia's Bega Cheese to buy over Canada's Saputo dairy plant
On Wednesday, Bega Cheese Ltd. announced an agreement to purchase Saputo Inc's Australian-based dairy facility in Koroit, Victoria State for AUD$250 million (US$184.5 million).
The deal comes four and a half months after Saputo revealed plans in tow to sell the milk plant to address concerns from Australia's competition watchdog about its acquisition of Murray Goulburn Cooperative.
Bega's Chief Executive Paul van Heerwaarden said, "The facility, which has 108 employees, would provide Bega with a significant presence in Western Victoria and support the growth of its core dairy business."
Bega believes that the facility will generate annualised core earnings of AUD$20 million at the current annual intake level but pointed out that it may take until fiscal 2021 for it to be fully integrated.