Tuesday, September 18, 2018
 Saputo Subsidiary Warrnambool Cheese and Butter Factory Complete Acquisition of the Everyday Cheese Business of Lion-Dairy & Drinks  

Saputo Inc. announces that its Australian subsidiary, Warrnambool Cheese and Butter Factory Company Holdings Limited, completed the transaction announced on March 2, 2015 and acquired the everyday cheese business of Lion-Dairy & Drinks Pty based in Victoria, Australia.

The purchase price of CDN$134.4 million (A$137.5 million), on a debt-free basis, includes CDN$104.1 million which represents the value of inventory net of a minimal amount of assumed liabilities, subject to closing adjustments, and was financed through new bank term loans.

The acquisition covers EDC Business' operations, including distribution, sales and marketing and intellectual property associated with Lion's Coon, Cracker Barrel2, Mil Lel and Fred Walker brands.

 

WCB will also secure ownership of Lion's cut and wrap facility, adjacent to WCB's cheese plant in Allansford, Victoria.

EDC Business generates revenues of around A$160m ($125.1m). It has a workforce of 170.

LDD managing director Peter West previously said: "Our decision to sell is part of our broader three-year strategy to turnaround performance at LDD and drive sustainable profit growth.

"We are focusing resources behind our biggest growth opportunities, which are in higher-value categories such as milk based beverages, speciality cheese and yoghurt."

With this investment, WCB will strengthen its presence in consumer branded everyday cheese products segment in Australia.

WCB produces and sells a range of dairy products in Australia and internationally.

The company offers cheese and milk products under the Great Ocean Road brand; and cheese and flavored cheddar cheeses, such as herbs 'n' spice, tomato 'n' chives, garlic 'n' pepper, cracked pepper, and chilli cheese under the Warrnambool Cheddars brand.


Source: Food Business Review

 


Posted on Thursday, May 28, 2015 (Archive on Thursday, June 04, 2015)
Posted by bholcomb@adpi.org  Contributed by bholcomb@adpi.org
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