Bega Cheese to buy Koroit plant from Saputo

By Jim Cornall

- Last updated on GMT

Bega Cheese is buying the Koroit plant from Saputo for A$250m.
Bega Cheese is buying the Koroit plant from Saputo for A$250m.

Related tags Cheese saputo

Canadian dairy company Saputo Inc., which agreed to sell its Koroit plant in Victoria, Australia, as part of its takeover of Murray Goulburn Co-operative Co. Limited, has entered into an agreement with Bega Cheese Limited to sell the plant.

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.

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