Parmalat Australia, a subsidiary of Italian dairy giant Parmalat, last week signed a deal to purchase Longwarry Food Park for around €45m (US$55.2m).
It will finance the proposed acquisition, which is subject to approval by the Australian Foreign Investment Review Board (FIRB), with existing capital.
Longwarry Food Park began life in 2001, and now produces fresh and long-life milk, cream cheese, and milk powders at a single facility in Longwarry, Victoria.
Around 80% of its output is exported, it is reported.
"Longwarry has grown significantly over recent years and is now a well-recognized supplier of fresh and commodity milk products," said Parmalat in a statement.
"With this transaction, the Parmalat Group further strengthens its position in the Australian market, broadening its manufacturing base in that country, enters the milk powder market and supports its overall milk supply base."
"This acquisition improves Parmalat Australia's export capability," it added.
Parmalat arrived in Australia in 1998 through its acquisition of fresh milk manufacturer, Pauls.
In September, in line with the launch of the Parmalat brand Down Under, Pauls was renamed Parmalat Australia.
The proposed acquisition of Longwarry Food Park is Parmalat's second move to strengthen its position in Australia in the last year.
In April 2014, Parmalat announced it had acquired Western Australia-based Harvey Fresh, which produces fresh, UHT and flavoured milk, cream, yogurt, cheese, and fruit juice, for €79m (US$97m).
Parmalat heralded the deal at the time as "further progress in the strategy to grow the Group's international activities."
In line with its global strategy, Parmalat also took steps in 2014 to build on its Brazilian dairy interests.