Bega Cheese to buy Koroit plant from Saputo

The selling price of A$250m (US$184m) is payable in cash at closing. The transaction is subject to approval by the Australian Competition and Consumer Commission (ACCC) and is expected to close in the second quarter of fiscal year 2019.

The divestiture was required because of the undertaking entered into with the ACCC in connection with the acquisition of the activities of Murray Goulburn​​, which completed on May 1, 2018.

The Koroit plant currently has approximately 110 employees and generates approximately A$240m (US$176m) in annual revenues.

Financial results​

In February, Bega Cheese released its 1H 2018 financial results, with profit after tax growth of 31% to A$20.6m (US$15.1m).

The company increased milk intake by 25%, driving volume growth of 19% in cream cheese and 33% in mozzarella cheese.

At the time, Bega Cheese said it is in the transition phase of the newly created Bega Foods, and it has increased investment in the newly acquired Vegemite and Zoosh brands while it acquired the Peanut Company of Australia (Australia’s largest peanut processor) in January 2018.