The purchase by Kyvalley Dairy will see the brand remain in Northern Victoria.
Kyvalley Dairy Group is owned by brothers, Wayne, Peter and David Mulcahy, the fifth generation of a family that has been part of the Australian dairy scene for 160 years.
The Mulcahy family currently employ more than 120 staff.
Peter Mulcahy said Kyvalley Dairy believes in the Australian dairy industry and is investing in its future.
He added the purchase of Kiewa Country supported local communities.
Kyvalley Dairy Group CEO, Alastair McCredden said the deal is an opportunity to relaunch the brand and continue jobs growth in regional Victoria.
Kyvalley Dairy said the acquisition gives the company an opportunity to increase supply of fresh milk both domestically and internationally.