Warrnambool Buys Everyday Cheese Business
04 Mar 2015 --- Canadian dairy giant Saputo has announced that its Australian subsidiary, Warrnambool Cheese and Butter Factory Company Holdings Limited (WCB), has entered into an agreement to acquire the everyday cheese business (EDC Business) of Lion-Dairy & Drinks Pty Ltd (Lion) based in Victoria, Australia.
The deal, worth $107m, is subject to the approval of WCB shareholders. Saputo, which holds 87.92% of the shares in WCB is supportive of the transaction and has advised WCB that it will vote its shares in favour of the transaction.
The EDC Business' operations include cutting and wrapping, distribution, sales & marketing and intellectual property associated with the COON, Cracker Barrel, Mil Lel and Fred Walker brands. The EDC Business generates annual sales of approximately $125 and employs approximately 170 people. The cut and wrap operations of the EDC Business are located in a building owned by WCB, which is adjacent to WCB's cheese manufacturing facility at Allansford.
The transaction will enable WCB to increase its presence in consumer branded everyday cheese products segment in Australia with strong market positions in this segment, and is consistent with Saputo's stated strategy to invest in WCB to accelerate its growth in Australia.
