TasFoods to take over Pyengana Dairy

By Jim Cornall contact

- Last updated on GMT

The area around Pyengana in Tasmania is home to many dairy farms. Pic:© Getty Images/Andesign101
The area around Pyengana in Tasmania is home to many dairy farms. Pic:© Getty Images/Andesign101
Australia’s TasFoods Group has announced the acquisition of the assets of Pyengana Dairy Company for a cash deal of A$1.55m (US$1.21m).

The deal is expected to close on October 6, 2017.

TasFoods said the acquisition is part of the group’s strategy to build an integrated business based on food products primarily sourced from Tasmania.

Pyengana Dairy produces traditional Cloth Matured Cheddar Cheese, which is supplied to retail outlets and restaurants throughout Australia.

Pyengana Dairy also produces fresh bottled milk under the Real Milk brand, which is supplied to retail chains, independent retail outlets and cafes across Tasmania.

Established in 1992

The business is located in Pyengana, northeastern Tasmania, surrounded by dairy farms with an average herd size of approximately 350 cows.

The business currently sources milk from the farm co-located on the site. Pyengana Dairy was established by Jon Healey in 1992.  Healey will remain with the Pyengana business after the deal is finalized.

Upon completion, the TasFoods Group will acquire the assets of Pyengana Dairy including a milk supply agreement with the on-site leased farm and enter into a long-term lease of the dairy processing factory.

Further investment likely

For the 12 months ended 30 June 2017, Pyengana Dairy reported an unaudited normalized revenue of A$3.1m (US$2.4m).

TasFoods Group said it expects to invest further funds to build up cheese stocks and install new equipment to support future capacity growth.

The company said the acquisition of the Pyengana Dairy assets will enhance the existing TasFoods Group dairy operations that include production of Meander Valley Dairy products and goat milk products under the Robur Farm Dairy brand.

Related topics: Manufacturers

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